2nd - Ch 11 and App D Ex Issuing bonds at a premium Instructions Chart of Accounts Journal Instructions Xof Accounts On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x ), receiving cash of $1,512,610. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles. 2 3 DATE DESCRIPTION JOURNAL POST. REF. DEBIT ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bond EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense