The board of directors of the Merced Corporation authorized the issuance of $200,000 face value of 10-year, 12 percent bonds dated April 1, 2019, and maturing on April 1, 2029. 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 2021. Record the following transactions on page 9 of a general journal. Omit descriptions.
2021
Apr. 1 Issued $40,000 of bonds at 96
Oct. 1 Paid the semiannual bond interest
1 Recorded the amortization of the discount on the bonds sold on April 1 using the straight-line method
1 Issued $30,000 of bonds at face value
Dec. 31 Recorded the adjusting entry to accrue the bond interest and to amortize the discount
31 Closed the Bond Interest Expense account into the Income Summary account

Question

The board of directors of the Merced Corporation authorized the issuance of $200,000 face value of 10-year, 12 percent bonds dated April 1, 2019, and maturing on April 1, 2029. 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 2021. Record the following transactions on page 9 of a general journal. Omit descriptions.
2021
Apr. 1 Issued $40,000 of bonds at 96 
Oct. 1 Paid the semiannual bond interest
1 Recorded the amortization of the discount on the bonds sold on April 1 using the straight-line method
1 Issued $30,000 of bonds at face value
Dec. 31 Recorded the adjusting entry to accrue the bond interest and to amortize the discount
31 Closed the Bond Interest Expense account into the Income Summary account

Quizplus · Accepted Answer

The Answer of The board of directors of the Merced Corporation authorized the issuance of $200,000 face value of 10-year, 12 percent bonds dated April 1, 2019, and maturing on April 1, 2029. 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 2021. Record the following transactions on page 9 of a general journal. Omit descriptions.
2021
Apr. 1 Issued $40,000 of bonds at 96 
Oct. 1 Paid the semiannual bond interest
1 Recorded the amortization of the discount on the bonds sold on April 1 using the straight-line method
1 Issued $30,000 of bonds at face value
Dec. 31 Recorded the adjusting entry to accrue the bond interest and to amortize the discount
31 Closed the Bond Interest Expense account into the Income Summary account

The Board of Directors of the Merced Corporation Authorized the Issuance