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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Shields, Inc., issued $150,000 of 9%, 20-year bonds for $164,845, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Prepare the journal entries for transactions described above. Note: Round your answers to the nearest whole dollar. Date Jan. 1 Jun. 30 Dec. 31 Account To record issuance of bonds. To record first semiannual installment. : Debit 0 0 0 0 0 0 D 0 0 Credit 0 0 0 0 0 0 0 To record second semiannual instaliment. b. Post the journal entries to their respective T-accounts. Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account
Transcribed Image Text:On January 1, Shields, Inc., issued $150,000 of 9%, 20-year bonds for $164,845, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Prepare the journal entries for transactions described above. Note: Round your answers to the nearest whole dollar. Date Jan. 1 Jun. 30 Dec. 31 Account To record issuance of bonds. To record first semiannual installment. : Debit 0 0 0 0 0 0 D 0 0 Credit 0 0 0 0 0 0 0 To record second semiannual instaliment. b. Post the journal entries to their respective T-accounts. Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account
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