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On January 31,
2018,
Dunkin
Logistics, Inc., issued
five-year,
3%
bonds payable with a face value of
$8,000,000.
The bonds were issued at
93
and pay interest on January 31 and July 31.
Dunkin
Logistics amortizes bond discounts using the straight-line method.
Requirement
| 1. | Record (a) the issuance of the bonds on January 31, 2018, (b) the semiannual interest payment and amortization of the bond discount on July 31, 2018, and (c) the interest accrual and discount amortization on December 31, 2018. |
a. Record the issuance of the bond payable on January 31,
2018.
(Record debits first, then credits. Exclude explanations from any journal entries.)
| Journal Entry |
| Date | Accounts | Debit | Credit |
| Jan | 31 | | | |
| | | | | |
| | | | | |
| | | | | |
Answer & Explanation
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