Question

Chisholm, Inc., completed the following selected transactions:
Year 1
Jan. 2 Issued $ 60,400,000 worth of 10-year, 8 percent bonds, dated January 2 of this year, at 96. Interest is payable semiannually on June 30 and December 31.
June 30 Paid semiannual interest on the bonds.
Dec. 31 Paid semiannual interest on the bonds.
31 Recorded an adjusting entry for amortization of discount on bonds.
31 Closed the Interest Expense account.
Year 2
June 30 Paid semiannual interest on the bonds. Dec.
31 Paid semiannual interest on the bonds.
31 Made an adjusting entry to record amortization of discount on bonds.
31 Closed the Interest Expense account.
Year 3
June 30 After paying interest and recording amortization of discount, Chisholm, Inc., redeemed part of the bond issue, buying $ 6,040,000 worth of its bonds (one-tenth of the original issue) on the market at 95. The current unamortized discount for all of the bonds is $ 1,812,000.

Required
Record the transactions in general journal form using pages 85 and 86 of the general journal.



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  • CreatedOctober 21, 2014
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