Question: On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $200,000. The bonds sold for $239,588 and

On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $200,000. The bonds sold for $239,588 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2018. 2. Prepare the entry to record interest on July 31, 2018. 3. Prepare the necessary journal entry on December 31, 2018. 4. Prepare the necessary journal entry on January 31, 2019.

  • Required 1
  • Required 2
  • Required 3
  • Required 4

Prepare the journal entry to record the bond issuance on February 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

  • Record the bond issuance on February 1, 2018.

Note: Enter debits before credits.
Date General Journal Debit Credit
February 01, 2018

  • Required 1
  • Required 2
  • Required 3
  • Required 4

Prepare the entry to record interest on July 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

  • Record the interest on July 31, 2018.

Note: Enter debits before credits.
Date General Journal Debit Credit
July 31, 2018

  • Required 1
  • Required 2
  • Required 3
  • Required 4

Prepare the necessary journal entry on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

  • Record the necessary entry on December 31, 2018.

Note: Enter debits before credits.
Date General Journal Debit Credit
December 31, 2018

  • Required 1
  • Required 2
  • Required 3
  • Required 4

Prepare the necessary journal entry on January 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

  • Record the necessary entry on January 31, 2019.

Note: Enter debits before credits.
Date General Journal Debit Credit
January 31, 2019

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