Blossom Company sold $3,100,000,7%, 10-year bonds on January 1, 2022. The bonds were dated January...
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Blossom Company sold $3,100,000,7%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Your answer is correct. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 101 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Credit Debit Account Titles and Explanation Cash 3131000 1 1/1/22 3100000 Bonds Payable 31000 Premium on Bonds Payable 2945000 2. 1/1/22 Cash 155000 Discount on Bonds Payable 3100000 Bonds Payable Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 101 and (2195. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually) No. Date Account Titles and Explanation Debit Credit 1. 12/31/22 2. 12/31/22
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