Blossom Company issued $516,000, 7%, 30-year bonds on January 1, 2017, at 103. Interest is payable...

   

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Blossom Company issued $516,000, 7%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Blossom uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual c interest and the premium amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 Cash Bonds Payable 515000 Premium on Bonds Payable (b) Dec. 31, 2017 TInterest Expense Premium on Bonds Payable Interest Payable (a) Jan, 1, 2017 Cash Bonds Payable 515000 Premium on Bonds Payable (b) Dec. 31, 2017 Interest Expense Premium on Bonds Payable Interest Payable (c) Jan. 1, 2018 |Interest Payable Cash (d) Jan. 1, 2047 Bonds Payable Cash Click you would like to Show Work for this question: Open Show Work Blossom Company issued $516,000, 7%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Blossom uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual c interest and the premium amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 Cash Bonds Payable 515000 Premium on Bonds Payable (b) Dec. 31, 2017 TInterest Expense Premium on Bonds Payable Interest Payable (a) Jan, 1, 2017 Cash Bonds Payable 515000 Premium on Bonds Payable (b) Dec. 31, 2017 Interest Expense Premium on Bonds Payable Interest Payable (c) Jan. 1, 2018 |Interest Payable Cash (d) Jan. 1, 2047 Bonds Payable Cash Click you would like to Show Work for this question: Open Show Work

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Solution No Date General journal debit credit a Jan 1 2017 Cash 516000... View the full answer