Question

Two independent situations follow:

1.		On January 1, 2020, Flint Limited issued $300,000 of 10-year, 8% bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.
2.		On June 1, 2020, Tamarisk Inc. issued at par, plus accrued interest, $231,000 of 10-year, 12% bonds dated January 1. Interest is payable semi-annually on July 1 and January 1.

Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
	Flint Limited
choose the accounting period                                                                      1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	Tamarisk Inc.
choose the accounting period                                                                      1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Prepare journal entries to record the payment of interest on July 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
	Flint Limited
7/1/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	Tamarisk Inc.
7/1/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Prepare journal entries to record the accrual of interest on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
	Flint Limited
12/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	Tamarisk Inc.
12/31/20	enter an account title	enter a debit amount	enter a credit amount

Answer 1