80.2K

Verified Solution

Link Copied!

Instruction Chart Of Accounts General Journal Instruction On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual interest of $47,500 ($950,000 ~ 10% * 1/2), receiving cash of $884,174. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Instruction Chart Of Accounts General Journal Journalize the entry to record the issuance of the bonds on July 1. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 611 Gain on Redemption of Bonds 113 Allowance for Doubtful Accounts 114 Notes Receivable EXPENSES 115 Interest Receivable 510 Cost of Goods Sold 121 Inventory 511 Bad Debt Expense 122 Supplies 512 Credit Card Expense 131 Prepaid Insurance 513 Cash Short and Over 140 Land 521 Salaries Expense 151 Building 531 Advertising Expense 152 Accumulated Depreciation-Building 532 Delivery Expense 153 Equipment 533 Repairs Expense 154 Accumulated Depreciation-Equipment 534 Rent Expense 535 Insurance Expense LIABILITIES 536 Supplies Expense LIABILITIES 536 Supplies Expense 210 Accounts Payable 551 Depreciation Expense-Building 221 Salaries Payable 552 Depreciation Expense-Equipment 231 Sales Tax Payable 590 Miscellaneous Expense 241 Notes Payable 710 Interest Expense 242 Interest Payable 711 Loss on Redemption of Bonds 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends

Answer & Explanation Solved by verified expert

See Answer