Answer Happy

Hereford Corporation issued 6%, 10-year bonds with a face value of $1,200,000 at a price of 96 on July 1, 2018. The bonds pay interest each January 1 and July 1. Hereford uses the straight-line amortization method for all bond premiums and discounts. The company has a fiscal year-end of December 31. Read the requirements. Requirement 1. Record the issuance of the bonds on July 1, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date 2018 Jul 1 Date 2018 Dec 31 Accounts Less Debit Requirement 2. Record the accrual for the cash interest payable on the bonds and the amortization of any premium or discount on the bonds on December 31, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Credit Debit Credit Requirement 3. Show how the accounts related to the bonds issued on July 1, 2018, would be reported on Hereford's balance sheet as of December 31, 2018. Liabilities C-- Requirements 1. Record the issuance of the bonds on July 1, 2018. 2. Record the accrual for the cash interest payable on the bonds and the amortization of any premium or discount on the bonds on December 31, 2018. 3. Show how the accounts related to the bonds issued on July 1, 2018, would be reported on Hereford's balance sheet as of December 31, 2018. Print Done X