Chapter 8
Non-Current Liabilities
402
Required
Record journal entries for the following items. Use the effective interest method to amortize
any premiums/discounts. Round all amounts to the nearest whole dollar.
a) The issuance of the bond on May 1, 2016.
b) The payment of interest on October 31, 2016.
c) The necessary adjusting entries at the company’s December 31, 2016 year end.
d) The payment of interest on April 30, 2017.
e) The retirement of the bonds on May 1, 2021 (assume interest has already been paid).
Date
Account Title and Explanation
Debit
Credit
