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Bonds Issued at a Discount Seattle Sales Corp. issued the following bonds at a discount:...

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Accounting

Bonds Issued at a Discount

Seattle Sales Corp. issued the following bonds at a discount:

Date of issue and sale: April 1, 20-1
Principal amount: $440,000
Sale price of bonds: 98
Denomination of bonds: $1,000
Life of bonds: 10 years
Stated rate: 7%, payable semiannually on September 30 and March 31

1. Prepare journal entries for:

a. Issuance of the bonds at a discount.

b. Interest payment and discount amortization on the bonds on September 30.

c. Year-end adjustment on the bonds.

If an amount box does not require an entry, leave it blank.1. Prepare journal entries for:

a. Issuance of the bonds at a discount.

b. Interest payment and discount amortization on the bonds on September 30.

c. Year-end adjustment on the bonds.

If an amount box does not require an entry, leave it blank.

Page:
DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT
1 a. 20-1 Apr. 1 1
2 2
3 3
4 4
5 b. Sept. 30 5
6 6
7 7
8 8
9 c. Dec. 31 9
10 10
11 11

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