Goddesss
Nov 22, 2009, 04:45 PM
Hi, if anyone could check out what I have done so far and let me know if I am going down the right track.
Prepare journal entries to record the following transactions relating to long-term bonds of Grier, Inc. (Show computations.)
a) On June 1, 2006, Grier, Inc. issued $600,000, 6% bonds for $587,640. Interest is payable semianually on Feb. 1 and Aug. 1 with the bonds maturing on Feb. 1, 2016. The bonds are callable at 102.
b) On Aug. 1, 2006, Grier paid interest on the bonds and recorded amortization. Grier uses straight-line amortization.
c) On Feb. 1, 2008, Grier paid interest and recorded amortization on all of the bonds, and purchased $360,000 of bonds at the call price.
These are the entrie I have o far.
a)
6/1/06 Cash 587,640
Discount on Bonds Payable 12,360
Bonds Payable 600,000
b)
8/1/06 Interest Expense 6,618
Cash(600,000 x 6% x 2/12) 600,000
Discount on Bonds Payable 618
($12,360/20)
I am unsure about the last entry. As soon as I figure it out will post it.
c)
2/1/08 ?
Prepare journal entries to record the following transactions relating to long-term bonds of Grier, Inc. (Show computations.)
a) On June 1, 2006, Grier, Inc. issued $600,000, 6% bonds for $587,640. Interest is payable semianually on Feb. 1 and Aug. 1 with the bonds maturing on Feb. 1, 2016. The bonds are callable at 102.
b) On Aug. 1, 2006, Grier paid interest on the bonds and recorded amortization. Grier uses straight-line amortization.
c) On Feb. 1, 2008, Grier paid interest and recorded amortization on all of the bonds, and purchased $360,000 of bonds at the call price.
These are the entrie I have o far.
a)
6/1/06 Cash 587,640
Discount on Bonds Payable 12,360
Bonds Payable 600,000
b)
8/1/06 Interest Expense 6,618
Cash(600,000 x 6% x 2/12) 600,000
Discount on Bonds Payable 618
($12,360/20)
I am unsure about the last entry. As soon as I figure it out will post it.
c)
2/1/08 ?