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Presented below are two independent situations. On January 1, 2017, Oriole Company issued $168,000 of 7%, 10-years bonds at par.
Presented below are two independent situations.
1. On January 1, 2017, Oriole Company issued $168,000 of 7%, 10-years bonds at par. interest is payable quarterly on April 1, July 1, October 1, and January 1.
2. On June 1, 2017, waterway company issued $120,000 of 11%, 10-year bonds dated January 1 at per plus accrued interest. Interest is payable semiannually on July 1 and January 1.
For each of these two independent situation, prepare journal entries to record the following.
(a) The issuance of the bonds
(b) The payment of interest on July 1
(c) The accrual of interest on December 31
Date Account Titles and Explanation Debit Credit
________ _______________________________________ ______________________ ___________________
_____________________________________ _________________________ __________________
___________ ___________________________________ ___________________________ ___________________
_________________________________ __________________________ ______________________
____________ ________________________________ _________________________ _____________________________
_____________________________ ___________________________ _______________________________
__________________________ ______________________ __________________________________
2. Waterway Company
__________________ _________________________ ___________________ _______________________________
___________________________ _____________________ ____________________________
______________________________ ______________________ ___________________________
____________________ ________________________ ____________________ ___________________________________
_________________________ ______________________ ___________________________________
