E13.4 (LO 1) Entries for Bond Transactions—Straight-Line
Celine Dion Company issued bonds on January 1, 2025. Interest is payable semiannually on July 1
and January 1. Dion Company uses the straight-line method of amortization for bond premium or
discount. Pertinent information follows:
Par value of bonds $ 600,000
Stated interest rate 10%
Term 20 years
Issue price 102
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest and related amortization on July 1, 2025.
c. The accrual of interest and the related amortization on December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Debit Credit
Jan. 1
b.
Jul. 1
c.
Dec. 31
,Solution: E13.4 (LO 1) Entries for Bond Transactions—Straight-Line
Celine Dion Company issued bonds on January 1, 2025. Interest is payable semiannually on
July 1 and January 1. Dion Company uses the straight-line method of amortization for bond
premium or discount. Pertinent information follows:
Par value of bonds $ 600,000
Stated interest rate 10%
Term 20 years
Issue price 102
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest and related amortization on July 1, 2025.
c. The accrual of interest and the related amortization on December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Debit Credit
Jan. 1 Cash 612,000
Bonds Payable 600,000
Premium on Bonds Payable 12,000
b. Debit Credit
Jul. 1 Interest Expense 29,700
Premium on Bonds Payable 300
Cash 30,000
c. Debit Credit
Dec. 31 Interest Expense 29,700
Premium on Bonds Payable 300
Interest Payable 30,000
, E13.5 (LO 1) Entries for Bond Transactions—Effective-Interest
Celine Dion Company issued bonds on January 1, 2025. Interest is payable semiannually on July 1 and
January 1. Dion Company uses the effective interest method of amortization for bond premium or
discount. Pertinent information follows:
Par value of bonds $ 600,000
Stated interest rate 10%
Term 20 years
Issue price 102
Effective Interest rate 9.7705%
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest and related amortization on July 1, 2025.
c. The accrual of interest and the related amortization on December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell),
into the yellow shaded input cells.
a. Debit
Jan. 1
b. Debit
Jul. 1
c.
Dec. 31
Celine Dion Company issued bonds on January 1, 2025. Interest is payable semiannually on July 1
and January 1. Dion Company uses the straight-line method of amortization for bond premium or
discount. Pertinent information follows:
Par value of bonds $ 600,000
Stated interest rate 10%
Term 20 years
Issue price 102
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest and related amortization on July 1, 2025.
c. The accrual of interest and the related amortization on December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Debit Credit
Jan. 1
b.
Jul. 1
c.
Dec. 31
,Solution: E13.4 (LO 1) Entries for Bond Transactions—Straight-Line
Celine Dion Company issued bonds on January 1, 2025. Interest is payable semiannually on
July 1 and January 1. Dion Company uses the straight-line method of amortization for bond
premium or discount. Pertinent information follows:
Par value of bonds $ 600,000
Stated interest rate 10%
Term 20 years
Issue price 102
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest and related amortization on July 1, 2025.
c. The accrual of interest and the related amortization on December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a
cell), into the yellow shaded input cells.
a. Debit Credit
Jan. 1 Cash 612,000
Bonds Payable 600,000
Premium on Bonds Payable 12,000
b. Debit Credit
Jul. 1 Interest Expense 29,700
Premium on Bonds Payable 300
Cash 30,000
c. Debit Credit
Dec. 31 Interest Expense 29,700
Premium on Bonds Payable 300
Interest Payable 30,000
, E13.5 (LO 1) Entries for Bond Transactions—Effective-Interest
Celine Dion Company issued bonds on January 1, 2025. Interest is payable semiannually on July 1 and
January 1. Dion Company uses the effective interest method of amortization for bond premium or
discount. Pertinent information follows:
Par value of bonds $ 600,000
Stated interest rate 10%
Term 20 years
Issue price 102
Effective Interest rate 9.7705%
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest and related amortization on July 1, 2025.
c. The accrual of interest and the related amortization on December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell),
into the yellow shaded input cells.
a. Debit
Jan. 1
b. Debit
Jul. 1
c.
Dec. 31
