: Accounting

Exercise 22-3A (Algorithmic)
Bonds Issued at a Discount

Seattle Sales Corp. issued the following bonds at a discount:

Date of issue and sale:	April 1, 20-1
Principal amount:	$430,000
Sale price of bonds:	98
Denomination of bonds:	$1,000
Life of bonds:	10 years
Stated rate:	7%, payable semiannually on September 30 and March 31

Prepare journal entries for:

Hide a.  Issuance of the bonds at a discount. b.  Interest payment and discount amortization on the bonds on September 30. c.  Year-end adjustment on the bonds. If an amount box does not require an entry, leave it blank. GENERAL JOURNAL page 1              DATE         ACCOUNT TITLE  DOC. NO.  POST. REF.  DEBIT   CREDIT       1 a.                                         1 2                                                     2 3                                                     3 4                   4 5 b.                                         5 6                                                     6 7                                                     7 8                   8 9 c.                                         9 10                                                     10 11                                                     11

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