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Coffman Company issued 1,000,000 10 year 10 percent bonds January 1, 2014. The bonds sold
for 1,000,000. Interest is payable semiannually each June 30 and December 31. Record the sale
of the bonds on January 1, 2014, and the payment of interest on June 30, 2014.
Solution
Coffman Company
Journal
Interest payable on bonds semi-annually = 1,000,000 x 10% x 6/12
= $50,000DateParticularsDebitCreditJan. 1, 2014Cash1,000,000Bonds payable1,000,000(To
record issue of bonds at face value)June 30,2014Bond interest expense50,000Cash50,000(To
record semi-annual interest payment)

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Coffman Company issued 1,000,000 10 year 10 percent bonds January 1,.pdf

  • 1. Coffman Company issued 1,000,000 10 year 10 percent bonds January 1, 2014. The bonds sold for 1,000,000. Interest is payable semiannually each June 30 and December 31. Record the sale of the bonds on January 1, 2014, and the payment of interest on June 30, 2014. Solution Coffman Company Journal Interest payable on bonds semi-annually = 1,000,000 x 10% x 6/12 = $50,000DateParticularsDebitCreditJan. 1, 2014Cash1,000,000Bonds payable1,000,000(To record issue of bonds at face value)June 30,2014Bond interest expense50,000Cash50,000(To record semi-annual interest payment)