Discount on Bonds Payable Assignment
Blossom Corporation issued $740,000, 9%, 20-year bonds on January 1, 2020, for $677,000. This price resulted in Blossom uses the effective interest method to amortize bond premium or discount. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15, indent manually.)
Date Account Titles and Explanation Debit Credit Jan. 1Tcash 677000 Discount on Bonds Payable 630001 Bonds Payable 740000 (b) Your answer is partially correct. Try again. Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2020. indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 67810 Discount on Bonds Payable 1210 Interest Payable 66600.