Question

Hutto, Inc., completed the following selected transactions:
Year 1
Jan. 2 Issued $ 2,000,000 worth of 20-year, 6 percent bonds, dated January 2 of this year, at 104. 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 premium 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 premium on bonds.
31 Closed the Interest Expense account.
Year 3
June 30 After paying interest and recording amortization of premium, Chisholm, Inc., redeemed part of the bond issue, buying $ 200,000 worth of its bonds (one-tenth of the original issue) on the market at 102. The current unamortized premium for all of the bonds is $ 70,000.

Required
Record the transactions in general journal form using pages 104 and 105 of the general journal.



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  • CreatedOctober 21, 2014
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