| Date |
Account Titles and Explanation |
Debit $ |
Credit $ |
| May 1-2017 |
Cash |
650,000 |
|
|
To Bonds Payable
(Issued 5-yr, 5% bond at FV ) |
|
650,000 |
|
|
|
|
| December31-2017 |
Interest Expenses |
21667 |
|
|
To interest Payable – Bond
( To record 8 months of interest
December -31-2017) |
|
21667 |
|
|
|
|
Herron Corp.
Balance Sheet (Partial)
For the Month Ended December 31, 2017
| Liabelity |
Amount In$ |
Assets |
Amount in $ |
|
|
|
|
| Long –Term Liabilities: |
|
|
|
| Bonds Payable (Due on 2016) |
650,000 |
|
|
|
|
|
|
| Current Liabilities |
|
|
|
| Bond Interest Payable |
21,667 |
|
|
|
|
|
|
| Date |
Account Titles and Explanation |
Debit $ |
Credit $ |
| May 1-2018 |
Interest Payable |
21667 |
|
|
To Cash
(To record interest paid in cash ) |
|
21,667\ |
|
|
|
|
| December 31-2018 |
To intrest expenses |
32,500 |
|
|
To interest Payable – Bond
( To record 12 months of interest
December -31-2018) |
|
32,500 |
|
|
|
|
| Jan. 1, 2019 |
Interest Expenses |
21667 |
|
|
To Cash
((To record payment of interest)) |
|
21667 |
|
|
|
|
| Jan. 1, 2019 |
Bonds Payable |
650000 |
|
|
Loss on Bond Redemption |
65000 |
|
|
To Cash
(To record redemption of the bonds) |
|
656,500 |
