Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount
On July Y Livingston Corporation, a wholesaler of manufacturing equipment, issued $ of year, bonds at a market effective interest rate of
receiving cash of $ Interest on the bonds is payable semiannually on December and June The fiscal year of the company is the calendar year.
Required:
For all journal entries, if an amount box does not require an entry, leave it blank.
Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.
July
Discount on Bonds Payable
Bonds Payable
Feedback
Check My Work
Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
Journalize the entries to record the following:
a The first semiannual interest payment on December Y and the amortization of the bond discount, using the interest method. Round to the nearest dollar.
