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Bonds Issued at a Premium

Bunkichi Corporation issued the following bonds at a premium:

Date of issue and sale:	March 1, 20-1
Principal amount:	$900,000
Sale price of bonds:	103
Denomination of bonds:	$1,000
Life of bonds:	10 years
Stated rate:	9%, payable semiannually on August 31 and February 28

Required:

1 . Prepare journal entries for the activities listed below. If required, round your answers to two decimal places.

(a) Issuance of the bonds at a premium.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Mar. 1				fill in the blank 5c0fbbff8063fa1_2	fill in the blank 5c0fbbff8063fa1_3	1
2					fill in the blank 5c0fbbff8063fa1_5	fill in the blank 5c0fbbff8063fa1_6	2
3					fill in the blank 5c0fbbff8063fa1_8	fill in the blank 5c0fbbff8063fa1_9	3

(b) Interest payment and premium amortization on the bonds on August 31, 20-1.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Aug. 31				fill in the blank b78f7c068fe3fe1_2	fill in the blank b78f7c068fe3fe1_3	1
2					fill in the blank b78f7c068fe3fe1_5	fill in the blank b78f7c068fe3fe1_6	2
3					fill in the blank b78f7c068fe3fe1_8	fill in the blank b78f7c068fe3fe1_9	3

(c) Year-end adjustment on the bonds for 20-1.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Dec. 31				fill in the blank 9d0e25fe9f8afd7_2	fill in the blank 9d0e25fe9f8afd7_3	1
2					fill in the blank 9d0e25fe9f8afd7_5	fill in the blank 9d0e25fe9f8afd7_6	2
3					fill in the blank 9d0e25fe9f8afd7_8	fill in the blank 9d0e25fe9f8afd7_9	3

(d) Reversing entry for the beginning of 20-2.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-2 Jan. 1				fill in the blank eff9d604dfdf075_2	fill in the blank eff9d604dfdf075_3	1
2					fill in the blank eff9d604dfdf075_5	fill in the blank eff9d604dfdf075_6	2
3					fill in the blank eff9d604dfdf075_8	fill in the blank eff9d604dfdf075_9	3

(e) Interest payments and premium amortization on the bonds for 20-2 (February 28 and August 31).

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-2 Feb. 28				fill in the blank d54581fe2ffbfed_2	fill in the blank d54581fe2ffbfed_3	1
2					fill in the blank d54581fe2ffbfed_5	fill in the blank d54581fe2ffbfed_6	2
3					fill in the blank d54581fe2ffbfed_8	fill in the blank d54581fe2ffbfed_9	3
4							4
5	Aug. 31				fill in the blank d54581fe2ffbfed_11	fill in the blank d54581fe2ffbfed_12	5
6					fill in the blank d54581fe2ffbfed_14	fill in the blank d54581fe2ffbfed_15	6
7					fill in the blank d54581fe2ffbfed_17	fill in the blank d54581fe2ffbfed_18	7

2 . Calculate the carrying value of the bonds on August 31, 20-2.

$fill in the blank b504ee03c000023_1

3. Prepare the bonds payable section of a partial balance sheet as of August 31, 20-2.

Bunkichi Corporation
Balance Sheet (Partial)
August 31, 20-2
Long-term liabilities:
	$fill in the blank 65b5ce004ff3055_2
	fill in the blank 65b5ce004ff3055_4	$fill in the blank 65b5ce004ff3055_5

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