Answer
Step1:
2009 Dec.31
Cash 290,000 dollars
Discount on bonds payable 10,000 dollars
Bonds Payable 300,000 dollars
Step2:
a)2010 Dec. 31
Bonds Interest Expenses 25,000 dollars
Bonds Interest payable 24,000 dollars
Discount on bonds payable 1,000 dollars
b)Dec. 31
Bonds interest payable 24,000 dollars
Cash 24,000 dollars
Step3:
2020 Dec. 31
Bonds Payable 300,000 dollars
Cash 300,000 dollars
Work Step by Step
Step1:
To record issue of bonds at a discount
Step2:
a)To record accrued bond interest and Amortization of bond discount
b)To record payment of bonds interest
Step3:
To record redemption of bonds on maturity
