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Journal Entries, Year 2

1. What is the yearly payment amount require for Note Payable (assume its an installment note)?

2. What is the interest rate on the Note Payable?

JOURNAL

 

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

1

Jun. 30

Interest Expense

 

18,427.00

 

2

 

Premium on Bonds Payable

 

2,948.00

 

3

 

Cash

   

21,375.00

4

30

Interest Expense

 

41,560.00

 

5

 

Discount on Bonds Payable

   

6,560.00

6

 

Cash

   

35,000.00

7

30

Bonds Payable

 

2,000,000.00

 

8

 

Gain on Redemption of Bonds

   

41,000.00

9

 

Discount on Bonds Payable

   

65,600.00

10

 

Cash

   

1,893,400.00

11

Sep. 30

Interest Expense

 

67,500.00

 

12

 

Interest Payable

 

22,500.00

 

13

 

Notes Payable

 

342,887.00

 

14

 

Cash

   

432,887.00

15

Dec. 31

Interest Expense

 

17,357.00

 

16

 

Interest Payable

   

17,357.00

17

31

Interest Expense

 

18,427.00

 

18

 

Premium on Bonds Payable

 

2,948.00

 

19

 

Cash

   

21,375.00

20

31

Income Summary

 

163,271.00

 

21

 

Interest Expense

   

163,271.00

22

31

Bonds Payable

 

475,000.00

 

23

 

Premium on Bonds Payable

 

23,584.00

 

24

 

Loss on Redemption of Bonds

 

20,600.00

 

25

 

Cash

   

519,184.00

 

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92713173

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