Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Sign up and see all textbooks for free! Illustration


Horngren'S Financial And Managerial Accounting
Found in: Page 660

Answers without the blur.

Just sign up for free and you're in.


Short Answer

Journalizing bond issuance and interest payments

On June 30, Parker Company issued 11%, five-year bonds payable with a face value

of $120,000. The bonds are issued at face value and pay interest on June 30 and

December 31.


1. Journalize the issuance of the bonds on June 30.

2. Journalize the semiannual interest payment on December 31

The cash account is debited with $120,000, and the bonds payable account is credited with $120,000.

See the step by step solution

Step by Step Solution

Step 1: Definition of the bond

The bond is a long-term liability that organisation issues to arrange the large amount of money from the market.

Step 2: Journal entry of the issue of bond





June 30



11% Bonds Payable


(Being entry is made to record the issue of the bond)

Most popular questions for Business-studies Textbooks


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.