Fireside, Inc. had the following bond issue:
Date of issue/sale: May 1, 20-APrincipal: $400,000Sale price of bonds: 96Life of bonds: 10 yearsStated rate: 6% a year payable semiannually on October 31 and April 30?
Required:Prepare the following general journal entries.
a.The issuance of the bonds on May 1, 20-A.b.The first interest payment for 20-A.c.The adjusting entry for December 31, 20-A.d.The reversing entry for January 1, 20-B.

What will be an ideal response?

a.

               GENERAL JOURNALPage 1
Date?DescriptionPost
Ref.

Debit
?CreditMay 1Cash 384,000.00   Discount on Bonds Payable 16,000.00      Bonds Payable  400,000.00
b.               GENERAL JOURNALPage 1
Date?DescriptionPost
Ref.

Debit
?CreditOct. 31Bond Interest Expense 12,800.00      Discount on Bonds Payable  800.00     Cash  12,000.00
c.               GENERAL JOURNALPage 1
Date?DescriptionPost
Ref.

Debit
?CreditDec. 31Bond Interest Expense 4,267.00      Discount on Bonds Payable  267.00     Bond Interest Payable  4,000.00
d.               GENERAL JOURNALPage 1
Date?DescriptionPost
Ref.

Debit
?CreditJan. 1Bond Interest Payable 4,000.00   Discount on Bonds Payable 267.00      Bond Interest Expense  4,267.00

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