Assignment 1 Using the General Journal tab, click Add Transaction to ournalize e
ID: 2532758 • Letter: A
Question
Assignment 1 Using the General Journal tab, click Add Transaction to ournalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction 2) Click the Reports tab and review the results of recording these transactions on the General Ledger. 3) Click Submit Work when complete Background Jaybin Mining issued $400,000,596, 5-year callable bonds payable that interest quarterly on March 31, june 30, September 30, and ecember 31. Thesé bonds were issued at a príce of 98 on January 1 2018. All entries related to these bonds are included in the Transactions section below. Jaybird uses the straight-line method for amortizing any bond discount or premium. Transactions: 01/01/2018 Record the issuance of the $400,000, 696, 5-year bonds payable at 98 03/31/2018 Record the quarterly interest payment for these bonds 06/30/2018 Record the quarterly interest payment for these bonds 09/30/2018 Record the quarterly interest payment for these bonds 10/01/2018 Jaybird called in half of these bonds at a price of 101 AVE WORK RESET RESULTS SUBMIT WoRK BuSINEss REPORTS January 1, 2018-December 31, 2018 COMPANY INFORMATION CHART OF ACCOUNTS GENERAL JOURNAL Date Accounts Debit Credit No transactions in JournalExplanation / Answer
1. Required journal entries are as prepared below:
Year Particulars L.F Debit ($) Credit ($) 2018 Jan-01 Cash (400,000*.98) 3,92,000 Discount on Bonds payable 8,000 Bonds Payable 4,00,000 (for bond issued at price $98) Mar-31 Interest Expense 6,400 Discount on Bonds payable (8,000/20) 400 Cash (400,000*6%*3/12) 6,000 (For Interest on bonds expensed) Jun-30 Interest Expense 6,400 Discount on Bonds payable (8,000/20) 400 Cash (400,000*6%*3/12) 6,000 (For Interest on bonds expensed) Sep-30 Interest Expense 6,400 Discount on Bonds payable (8,000/20) 400 Cash (400,000*6%*3/12) 6,000 (For Interest on bonds expensed) Oct-01 Bonds Payable 2,00,000 Loss on rerirement of bonds 5,400 Discount on Bonds Payable (6,800/400,000*200,000) 3,400 Cash (200,000*1.01) 202000 (For bonds called at 101) Dec-31 Interest Expense 3,200 Discount on Bonds payable (4,000/20) 200 Cash (200,000*6%*3/12) 3,000 (For Interest on bonds expensed)