Bonds Payable – Issued “plus accrued interest ”.       Jump Company issued $200,000 of bonds payable...

Date

Account Title and explanation

Debit $

Credit $

1/4/2016

cash

202,000

To Bonds Payable

200,000

   To Interest on Bonds payable

2,000

(Being Bonds issued with Accrued interest for 2 months)

(200,000*4%*3/12)=$2,000

31/12/2016

Interest Expense

6,000

Interest payable

2,000

   TO cash

8,000

(Being interest paid)

200,000*4%*9/12=$6,000