The board of directors of Roma Company authorized issuance of $1,000,000 of 5 percent bonds. Each bond

Question:

The board of directors of Roma Company authorized issuance of $1,000,000 of 5 percent bonds. Each bond has a of $10,000. The interest is payable semiannually on February 1 and August 1. The bonds are dated February 1, 2019, and mature 10 years later.

INSTRUCTIONS
1. Record the transactions below in general journal form. Use the account names given in the chapter. (Round your numbers to the nearest whole dollar.)
2. Prepare the Long-Term Liabilities section of the corporation€™s balance sheet on December 31, 2019.

DATE TRANSACTIONS FOR 2019 Issued $500,000 of bonds at 100.6. Paid the semiannual interest on the bonds issued and recor

DATE TRANSACTIONS FOR 2020 Jan. Reversed the adjusting entry of December 31, 2019.

Analyze: If the reversing entry had not been recorded in January 2020, how would the payment of bond interest be recorded in February 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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...