Styles I am trying to make a journal entry Please note: The bookkeeper that we h
ID: 2471523 • Letter: S
Question
Styles I am trying to make a journal entry Please note: The bookkeeper that we had before you arrived was not very good. He never created a Trial Balance and after he left we realized that he neglected to record the issuances of the bond issued on January 1 of this year and the recording of the interest payment on June 30. Since we do not make entries into "closed" periods record the entries as of December 31st. December 31: On January 1, Byte received S204,134.10 when they issued a $190,000.00, 7%, 10sear bond. Interest is to be paid semiannually on June 30 and December 31, The market rate was 6%. This entry was never recorded. December 31: Please record the timely interest payment for the bond using the straight line method that was made on June 30th, with check # 5367, This entry was never recorded. December 31: Please record the timely interest payment for the bond using the straight line method that was made on December 31st, with check # 6010.Explanation / Answer
Premium on Bond amortization per half year=$14,134.10/20=706.71
Date Code Account Description Debit Credit Dec-31 5090 Interest Expense 5,943.29 2212 Premium on Bond Payable 706.71 1110 Cash 6,650 Dec-31 5090 Interest Expense 5,943.29 2212 Premium on Bond Payable 706.71 1110 Cash 6,650