The board of directors of Machine Shop, Inc., authorized the issuance of $1,000,000 face value, 10-year, 5

Question:

The board of directors of Machine Shop, Inc., authorized the issuance of $1,000,000 face value, 10-year, 5 percent bonds dated April 1, 2019, and maturing on April 1, 2029. Interest is payable semiannually on April 1 and October 1.

INSTRUCTIONS
1. Record the transactions below in general journal form. Use the account names given in the chapter.
2. Prepare the Long-Term Liabilities section of the corporation€™s balance sheet on December 31, 2019.

DATE TRANSACTIONS FOR 2019 Issued $400,000 face value bonds at 101.5. Аprг. Oct. Paid the semiannual interest on the o

Analyze: If the reversing entry was not recorded, what entry would be required when the interest expense is paid in April 2020?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...