Record these transactions in the General Ledger Record any adjusting entries for interest in general journal form. Geary Company has a December 31 year-end.

Geary Company, which closed its books on December 31, 2018 is authorized to issue $600,000 of 6%, 20-year bonds dated March 1, 2019. On July 1, 2019, the bonds were sold at 100 plus accrued interest. Interest payments were made on September 1, 2019 and March 1, 2020.

Prepare the journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on March 1, 2021.

04APR – Issued a $6,000, 60-day, 8% note payable in payment of an account with the Marion Company.

22MAY – Borrowed $50,000 from Sinclair Bank, signing a 60-day note at 9%

14JUN – Paid Marion Company the principal and interest due on the April 15^th note payable.

01JUL – Issued bonds at 100 plus accrued interest.

13JUL – Purchased $15,000 of merchandise from Sharp Company: signed a 90-day note with 8% interest.

21JUL – Paid the May 22^nd note due to Sinclair Bank.

01SEP – Paid semiannual bond interest to bondholders.

02OCT – Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12%.

11OCT – Defaulted on the note payable to Sharp Company.

01SEP – Paid semiannual bond interest

31DEC – Accrual of notes payable interest.

31DEC – Accrual of bond interest.

01MAR2020 – Paid semiannual bond interest to bondholders.

01MAR2021 – Retired $200,000 of the bonds at 104.

Answer rating: 100% (QA)

JOURNAL ENTRY Date Particulars Debit Credit 4Apr Accounts Payable AC Dr 6000 Notes Payable AC 6000 I... View the full answer