E. On December 31 of the current fiscal year, Palus Inc. issued...

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E.	On December 31 of the current fiscal year, Palus Inc. issued $500,000 of 10-year, 11% bonds. The bonds were
dated December 31 of the same year. Interest on the bonds is payable on June 30 and December 31 of each year.

Instructions: Record the following transactions. (Omit explanations and round to the nearest dollar).
(1) The bonds were sold for $531,161 on December 31 of the current year. The market rate of interest on this
date was 10%.
(2) Interest was paid on June 30
(3) $1,558 of Bond Premium was amortized.
(4) Interest was paid on December 31
(5) $1,558 of Bond Premium was amortized.
(6) On December 31 (bonds are one year old); one-half of the bonds were redeemed at 103.

JOURNAL					PAGE

	DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT
1						1
2						2
3						3
4						4
5						5
6						6
7						7
8						8
9						9
10						10
11						11
12						12
13						13
14						14
15						15
16						16

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