The board of directors of the Columbus Corporation authorized the issuance of $400,000 face value of 8-year, 9 percent bonds dated April 1, 2019, and maturing on April 1, 2027. Interest is payable semiannually on April 1 and October 1. Each bond has a face value of $1,000. Because the funds to be raised were not immediately needed, no bonds were issued until April 1, 2021. Record the following transactions on page 8 of a general journal. Omit descriptions.
2021
Apr. 1 Issued $80,000 of bonds at 102.4
Oct. 1 Paid the semiannual bond interest
1 Issued $50,000 bonds at face value
1 Recorded the amortization of the premium on the bonds sold on April 1 using the straight-line method
Dec.31 Recorded the adjusting entry to accrue the bond interest and to amortize the premium
31 Closed the Bond Interest Expense account into the Income Summary account

Question

The board of directors of the Columbus Corporation authorized the issuance of $400,000 face value of 8-year, 9 percent bonds dated April 1, 2019, and maturing on April 1, 2027. Interest is payable semiannually on April 1 and October 1. Each bond has a face value of $1,000. Because the funds to be raised were not immediately needed, no bonds were issued until April 1, 2021. Record the following transactions on page 8 of a general journal. Omit descriptions.
2021
Apr. 1 Issued $80,000 of bonds at 102.4 
Oct. 1 Paid the semiannual bond interest
1 Issued $50,000 bonds at face value
1 Recorded the amortization of the premium on the bonds sold on April 1 using the straight-line method
Dec.31 Recorded the adjusting entry to accrue the bond interest and to amortize the premium
31 Closed the Bond Interest Expense account into the Income Summary account

Quizplus · Accepted Answer

The Answer of The board of directors of the Columbus Corporation authorized the issuance of $400,000 face value of 8-year, 9 percent bonds dated April 1, 2019, and maturing on April 1, 2027. Interest is payable semiannually on April 1 and October 1. Each bond has a face value of $1,000. Because the funds to be raised were not immediately needed, no bonds were issued until April 1, 2021. Record the following transactions on page 8 of a general journal. Omit descriptions.
2021
Apr. 1 Issued $80,000 of bonds at 102.4 
Oct. 1 Paid the semiannual bond interest
1 Issued $50,000 bonds at face value
1 Recorded the amortization of the premium on the bonds sold on April 1 using the straight-line method
Dec.31 Recorded the adjusting entry to accrue the bond interest and to amortize the premium
31 Closed the Bond Interest Expense account into the Income Summary account

The Board of Directors of the Columbus Corporation Authorized the Issuance