Chapter 8
Non-Current Liabilities
399
a) Is this bond issued at a discount or at a premium? Prepare the journal entry on May 1, 2016,
to record the issue of the bonds.
Date
Account Title and Explanation
Debit
Credit
b) Prepare the journal entry on November 1, 2016, to record the first interest payment and the
amortization of the premium/discount.
Date
Account Title and Explanation
Debit
Credit
c) Prepare the adjusting entry on December 31, 2016.
Date
Account Title and Explanation
Debit
Credit
