2. Basement Corporation had the following bond issue: Date of issue/sale: April 1, 2020 Principal: $400,000...

 

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2. Basement Corporation had the following bond issue: Date of issue/sale: April 1, 2020 Principal: $400,000 Sale price of bonds: 103 Life of bonds: 10 years Stated rate: 8% a year payable semiannually on October 1 and May 1 Required: Date Prepare the following general journal entries. a. The issuance of the bonds on April 1, 2020. b. The first interest payment on October 1. c. The adjusting entry on December 31 to record Interest Expense. GENERAL JOURNAL Description Post Ref. Debit Page 1 Credit 2. Basement Corporation had the following bond issue: Date of issue/sale: April 1, 2020 Principal: $400,000 Sale price of bonds: 103 Life of bonds: 10 years Stated rate: 8% a year payable semiannually on October 1 and May 1 Required: Date Prepare the following general journal entries. a. The issuance of the bonds on April 1, 2020. b. The first interest payment on October 1. c. The adjusting entry on December 31 to record Interest Expense. GENERAL JOURNAL Description Post Ref. Debit Page 1 Credit

Answer rating: 100% (QA)

a b C Date Oct 1 2020 Bond face value Bond issue price Premium on bonds payable Date D... View the full answer