BE10-10 Halloway Company has issued three different bonds during 2011. Interest is payable semiannually on each of these bonds.
1. OnJanuary1,2011,1,000,8%,5-year,$1,000bondsdatedJanuary1,2011,wereissuedatface value.
2. OnJuly1,$800,000,9%,5-yearbondsdatedJuly1,2011,wereissuedat102.
3. OnSeptember1,$200,000,7%,5-yearbondsdatedSeptember1,2011,wereissuedat98.
Prepare the journal entry to record each bond transaction at the date of issuance.
BE10-11 The balance sheet for Lemay Company reports the following information on July 1, 2011.
Long-term liabilities
Bonds payable $1,000,000
Less: Discount on bonds payable 60,000 $940,000
Lemay decides to redeem these bonds at 101 after paying semiannual interest. Prepare the jour- nal entry to record the redemption on July 1, 2011.