Question: 25. Please answer the below. Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2011, Daggett Company issued $900,000 of ten-year, 9% bonds payable

25. Please answer the below.

Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2011, Daggett Company issued $900,000 of ten-year, 9% bonds payable for $830,656, yielding an effective interest rate of 10%. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, 2012, and (c) the semiannual interest payment and discount amortization on December 31, 2012. Round amounts to the nearest dollar.

General Journal
Date Description Debit Credit
a.)
Dec.31 Cash $Answer

Incorrect 0.00 points out of 1.00

$Answer

Correct 1.00 points out of 1.00

AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

Answer

Correct 1.00 points out of 1.00

AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense

Incorrect 0.00 points out of 1.00

Answer

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

To record issuance of bonds.
b.)
Jun.30 AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

Answer

Correct 1.00 points out of 1.00

AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense

Correct 1.00 points out of 1.00

Answer

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

Cash Answer

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

To record semiannual interest payment and discount amortization.
c.)
Dec.31 AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

Answer

Correct 1.00 points out of 1.00

AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense

Correct 1.00 points out of 1.00

Answer

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

Cash Answer

Correct 1.00 points out of 1.00

Answer

Incorrect 0.00 points out of 1.00

To record semiannual interest payment.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!