Gia Company had the following bond issue:
Date of issue/sale: April 1, 20-A
Face value: $200,000
Sale price of bonds: 99
Life of bonds: 10 years
Stated interest rate: 6% a year payable semiannually on September 30 and March 31

Required:
Prepare the following general journal entries.
a.
The issuance of the bonds on April 1, 20-A.
b.
The interest payment and premium amortization for first six months.
c.
The redemption of $50,000 worth of bonds on April 1, 20-E, at 102.

Question

Gia Company had the following bond issue:
Date of issue/sale: April 1, 20-A
Face value: $200,000
Sale price of bonds: 99
Life of bonds: 10 years
Stated interest rate: 6% a year payable semiannually on September 30 and March 31
​
Required:
Prepare the following general journal entries.
a.
The issuance of the bonds on April 1, 20-A.
b.
The interest payment and premium amortization for first six months.
c.
The redemption of $50,000 worth of bonds on April 1, 20-E, at 102.

Quizplus · Accepted Answer

The Answer of Gia Company had the following bond issue:
Date of issue/sale: April 1, 20-A
Face value: $200,000
Sale price of bonds: 99
Life of bonds: 10 years
Stated interest rate: 6% a year payable semiannually on September 30 and March 31
​
Required:
Prepare the following general journal entries.
a.
The issuance of the bonds on April 1, 20-A.
b.
The interest payment and premium amortization for first six months.
c.
The redemption of $50,000 worth of bonds on April 1, 20-E, at 102.

Gia Company Had the Following Bond Issue