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Issuance of $80,000.00 in bonds Face value of the bond is 7.00% annual interest rate Market value at the time the bond is issued is 6.00% annual interest rate The bond is issued on January 1, 2020 and will mature on December 31, 2012 Bond interest is paid once a year on December 31st.

Create the general journal entries for the issuer on January 1, 2020 when the bond is issued, and on December 31, 2020 when the first interest payment is made.

(check figure: $4,928.30 debit to Bond Interest Expense on the December 31, 2020 interest payment general journal entry)

Principal:

Interest:

Date: Cash: Interest: Premium: Balance

1/1/2010 Cash

Premium or Discount on Bonds Payable Bonds Payable

12/31/2020 Bond Interest Expense Premium or Discount on Bonds Payable Cash

Office Update To keep up-to-date with security updates, fines, and improvements, choose Check for Updates K13 1 Issuance of 580,000.00 in bonds 2 Face value of the bond is 7.00% annual interest rate Market value at the time the bond is issued is 6.00% annual interest rate The bond is issued on January 1, 2020 and will mature on December 31, 2012 s Bond interest is paid once a year on December 31st Create the general journal entries for the issuer on January 1, 2020 when the & bond is issued, and on December 31, 2020 when the first interest payment is made 9 10 check figuro: $4.928 30 debit to Bond Interest Expense on the 11 December 31, 2020 interest payment general journal entry) 10 14 15 Principal 16 Interest 17 1/1/10 Cash Premium or Discount on Bonds Payable Bords Payable Date Cash Interest Premium Balance 12/31/20 Bond Interest Expense Premium or Discount on Bonds Payable Cash 19 20 21 22 23 24 25 26 27 28 29 30 12 33 35 37 Long Term Note Bond Lease +

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