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View Full Version : Journalizing Entries


adamjano
Sep 26, 2007, 03:12 PM
The question I have is about how to journalize a specific business transaction. There is no monetary number given, just x, but I don't know how to journalize it. The transaction is : " Gateway repaid $X in the principle of the Bond Payable." I don't understand that?

CaptainForest
Sep 26, 2007, 04:58 PM
When you pay back a Bond…the JE is:

Dr. Bonds Payable
Dr. Interest Expense
Cr. Cash