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Problem 10.5A Bond Interest (Bonds Issued at Face...

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Problem 10.5A Bond Interest (Bonds Issued at Face Value) L.O. 5 Blue Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2011, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1. The bonds were issued on August 1, 2011, at 100 plus three months' accrued interest. a. August 1, 2011, to record the issuance of the bonds. b. November 1, 2011, to record the first semiannual interest payment on the bond issue. c. December 31, 2011, to record interest expense accrued through year-end. d. May 1, 2012, to record the second semiannual interest payment. Prepare the necessary journal entries in general journal form on (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response): Date General journal Debit Credit Aug. 1, 2011 (Click to select)Office equipmentAccounts receivableCashAccounts payableBonds payableBond interest expenseBond interest payableBonds receivable (Click to select)Bonds payableBond interest expenseBonds receivableOffice equipmentAccounts payableAccounts receivableBond Interest payableCash (Click to select)Bonds receivableCashBonds payableAccounts receivableOffice equipmentAccounts payableBond interest expenseBond Interest payable Nov. 1, 2011 (Click to select)Bond interest expenseCashAccounts receivableBond interest payableBonds payableOffice equipmentBonds receivableAccounts payable (Click to select)Accounts payableOffice equipmentBond interest expenseAccounts receivableBond interest payableBonds payableBonds receivableCash (Click to select)Bond interest payableOffice equipmentBonds payableBonds receivableBond interest expenseCashAccounts receivableAccounts payable Dec. 31, 2011 (Click to select)Discount on bond payableNotes payableBond interest expenseCashInterest expensePremium on bond payableBonds payableInterest revenue (Click to select)Interest revenueDiscount on bond payableInterest expenseNotes payableCashBond interest payablePremium on bond payableBonds payable May 1, 2012 (Click to select)CashBond interest expenseOffice equipmentBonds receivableBond interest payableBonds payableAccounts payableAccounts receivable (Click to select)Bond interest expenseBonds payableCashAccounts payableOffice equipmentBonds receivableBond interest payableAccounts receivable (Click to select)Bond interest payableCashAccounts payableBond interest expenseAccounts receivableBonds payableBonds receivableOffice equipment

 

Paper#12830 | Written in 18-Jul-2015

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