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L & L Underwriters issued the following bonds:

Date of issue and sale:	April 1, 20-1
Principal amount:	$400,000
Sale price of bonds:	100
Denomination of bonds:	$1,000
Life of bonds:	20 years
Stated rate:	9%, payable semiannually on September 30 and March 31

Required:

	Prepare journal entries for:
	(a) Issuance of the bonds.
	(b) Interest payment on the bonds on September 30.
	(c) Year-end adjustment on the bonds.

CHART OF ACCOUNTS
L & L Underwriters
General Ledger
ASSETS 101 Cash 122 Accounts Receivable 141 Supplies 181 Office Equipment LIABILITIES 202 Accounts Payable 219 Wages Payable 252 Bonds Payable 253 Bond Interest Payable EQUITY 321 Common Stock 322 Paid-In Capital in Excess of Par-Common Stock 329 Paid-In Capital from Sale of Treasury Stock 331 Retained Earnings 333 Cash Dividends	REVENUE 401 Sales

a) Prepare journal entries for the issuance of the bonds.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2

(b) Prepare journal entries for the interest payment on the bonds on September 30.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2

(c) Prepare journal entries for the year-end adjustment on the bonds.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3

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