Journal entries

Question 1

PVA problem J/E

Answer 1

A)
Cash dr
Premium/ discount dr or cr
Bonds payable cr

B)
Interest expense
Premium/ discount dr or cr
Bonds payable cr

Question 2

Retire bonds J/E

Answer 2

Bonds payable
loss dr gain cr
Cash cr
Discount cr premium cr

Question 3

Repurchasing/ selling common stock J/E

Answer 3

Repurchasing:
Treasury stock dr
Cash cr

Selling:
Cash dr
additional paid-in dr or cr
treasury cr

Question 4

Declare dividends

Answer 4

under 25%:
Retained earnings dr
common stock cr
additional paid-in cr

over 25%
Retained earnings dr
common stock cr