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Question: on january 1 2016 hackman corporation issued 1150000 face value...

Question details

On January 1, 2016, Hackman Corporation issued $1,150,000 face value 7% bonds dated January 1, 2016, for $1,168,550. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2020. Hackman uses the straight-line amortization method.

Required:

Record the issuance of the bonds and the first two interest payments.
CHART OF ACCOUNTS
Hackman Corporation
General Ledger
ASSETS
111 Cash
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
181 Equipment
198 Accumulated Depreciation
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
255 Bonds Payable
256 Premium on Bonds Payable
257 Discount on Bonds Payable
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Sales Revenue
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
910 Income Tax Expense

Record the issuance of the bonds on January 1 and the first two interest payments on June 30 and December 31.

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

5

6

7

8

9

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