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Bonds Issued at a Discount
Seattle Sales Corp. issued the following bonds at a discount:
| Date of issue and sale: | April 1, 20-1 |
| Principal amount: | $440,000 |
| Sale price of bonds: | 98 |
| Denomination of bonds: | $1,000 |
| Life of bonds: | 10 years |
| Stated rate: | 7%, payable semiannually on September 30 and March 31 |
1. Prepare journal entries for:
a. Issuance of the bonds at a discount.
b. Interest payment and discount amortization on the bonds on September 30.
c. Year-end adjustment on the bonds.
If an amount box does not require an entry, leave it blank.1. Prepare journal entries for:
a. Issuance of the bonds at a discount.
b. Interest payment and discount amortization on the bonds on September 30.
c. Year-end adjustment on the bonds.
If an amount box does not require an entry, leave it blank.
Page: | | DATE | ACCOUNT TITLE | DOC. NO. | POST. REF. | DEBIT | CREDIT | |
| 1 | a. 20-1 Apr. 1 | | | | | | 1 |
| 2 | | | | | | | 2 |
| 3 | | | | | | | 3 |
| 4 | | | | | | | 4 |
| 5 | b. Sept. 30 | | | | | | 5 |
| 6 | | | | | | | 6 |
| 7 | | | | | | | 7 |
| 8 | | | | | | | 8 |
| 9 | c. Dec. 31 | | | | | | 9 |
| 10 | | | | | | | 10 |
| 11 | | | | | | | 11 |
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