Question: ACC113 L A Click Submit to complete this assessment Question 15 (8 Grades) On 1/1/2020, Blue Company issued 5-year, 8% bonds with a par value

ACC113

ACC113 L A Click Submit to complete this assessment Question 15 (8

L A Click Submit to complete this assessment Question 15 (8 Grades) On 1/1/2020, Blue Company issued 5-year, 8% bonds with a par value of $400,000. The company received $320,000 in cash. Interest is paid semiannually on 30 June and 31 December every year. Required: (1) Prepare the journal entry to record the bonds issuance on 1/1/2020. (2) Prepare the journal entry to record the interest payment and the amortization of bond discount or premium on 30/6/2020. (3) Prepare the journal entry to record the repayment of bonds on 31/12/2024 CLEARLY INDICATE THE DEBITS & CREDITS Example: on 1 January 2020, XYZ Company pays $10,000 cash to purchase land Answer 1/1/2020 Dr. Land 10,000 Cr. Cash 10,000

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