Roof Top Corporation had the following bond issue:
Date of issue/sale: May 1, 20-A
Principal: $400,000
Sale price of bonds: 98
Life of bonds: 10 years
Stated rate: 6% a year payable semiannually on October 31 and April 30

Required:
Prepare the following general journal entries.
a.
The issuance of the bonds on May 1, 20-A.
b.
The first interest payment.
c.
The redemption of $100,000 worth of bonds on May 1, 20-D, at 99.

Question

Roof Top Corporation had the following bond issue:
Date of issue/sale: May 1, 20-A
Principal: $400,000
Sale price of bonds: 98
Life of bonds: 10 years
Stated rate: 6% a year payable semiannually on October 31 and April 30
​
Required:
Prepare the following general journal entries.
a.
The issuance of the bonds on May 1, 20-A.
b.
The first interest payment.
c.
The redemption of $100,000 worth of bonds on May 1, 20-D, at 99.

Quizplus · Accepted Answer

The Answer of Roof Top Corporation had the following bond issue:
Date of issue/sale: May 1, 20-A
Principal: $400,000
Sale price of bonds: 98
Life of bonds: 10 years
Stated rate: 6% a year payable semiannually on October 31 and April 30
​
Required:
Prepare the following general journal entries.
a.
The issuance of the bonds on May 1, 20-A.
b.
The first interest payment.
c.
The redemption of $100,000 worth of bonds on May 1, 20-D, at 99.

Roof Top Corporation Had the Following Bond Issue