Answer Happy

Problem IV (113) - Entries for bonds payable. Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Titus Co.: March 1 Issued $800,000 face value Titus Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on Titus Co. bonds. (Use straight-line amortization of any premium or discount.) December 1 Paid semiannual interest on Titus Co. bonds and purchased $400,000 face value bonds at the call price in accordance with the provisions of the bond indenture. Solution Problem IV (113) Date 1 March Ref Credit Account Name Debit 1 June 1 December 1 December