Entries for Bonds Payable Prepare the Necessary Journal Entries to Record

Essay

Entries for bonds payable Prepare the necessary journal entries to record the following transactions relating to the long- term issuance of bonds by Glendale Corp.Show calculations and round to the nearest dollar. March 1 Issued $200,000 (face value)8% bonds for $218,040, including accrued interest.Interest is payable semi-annually on December 1 and June 1 with the bonds maturing 10 years from the previous December 1.The bonds are callable at 102. June 1 Paid semi-annual interest on the bonds.Use straight-line amortization for any premium or discount. December 1 Paid semi-annual interest on the bonds, and then purchased $100,000 face value bonds at the Long-Term Financial Liabilities 14- 37 call price in accordance with the provisions of the bond indenture.