J

4 D E F G I 1 J K L M N. N o P Q R S T U 1 ALT-BOND-DISC-AMORT CASH 2 3 DEBIT CREDIT BONDS PAYABLE DISCOUNT ON BONDS PAYABLE PREMIUM ON BONDS PAYABLE BOND INTEREST EXPENSE 4 DATE GENERAL JOURNAL (USE Dropdowns) 1/1/17 CASH DISCOUNT ON BONDS PAYABLE BONDS PAYABLE 96,000 5 Date Transaction 1/1/17 Jackson Company issued $210,000 of bonds at a price of 96.00% of face value. The bonds have a maturity of 3 years and an interest rate of 5.00% with annual interest payments. (Use dropdowns to see the accounts in the journal) 12/31/17 Make the first interest entry and amortize a portion of the bond discount. 6 7 8 9 8600 V WN 12/31/17 BOND INTEREST EXPENSE DISCOUNT ON BONDS PAYABLE CASH 10 7 11 12 12/31/18 Make the second interest entry. 9 12/31/18 10 13 14 BOND INTEREST EXPENSE DISCOUNT ON BONDS PAYABLE CASH 11 12 15 16 12/31/19 Make the third interest entry. 13 14 12/31/19 BOND INTEREST EXPENSE DISCOUNT ON BONDS PAYABLE CASH 15 17 18 19 20 16 17 12/31/19 BONDS PAYABLE CASH 12/31/19 Make the entry to pay off the face amount of the bonds at the end of year 3. 21 18 19 22 23 20 24