Accounting 2

hho9e_p11_26a_eip_stud.xls

P11-26A


Accounting, 9e
P11-26A	Journalizing and reporting bond transactions
LO 3, 4 [20-25 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
The board of directors of Delta Health Spa authorizes the issuance of $600,000 of
5%, 10-year bonds payable. The semiannual interest dates are May 31 and
November 30. The bonds are issued on July 31, 2012, at par plus accrued interest.
Requirements
1.	Journalize the following transactions (Round your answers to the nearest whole
	dollar.):
a.	Issuance of the bonds on July 31, 2012.
b.	Payment of interest on November 30, 2012.
c.	Accrual of interest on December 31, 2012.
d.	Payment of interest on May 31, 2013.
2.	Report interest payable and bonds payable as they would appear on the Delta
	balance sheet at December 31, 2012.
Test Your Knowledge
P11-26A
Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS		DEBIT	CREDIT
2012
a. Jul 31
	Issued bonds payable 2 months after the date of the bonds
b. Nov 30
c. Dec. 31
	Accrued interest
2013
d. May 31
	Paid interest
Req. 2
Balance at December 31, 2012:
Current liabilities:
Interest payable				$ - 0
Long-term liabilities
Bonds payable				$ - 0

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