Jobs Inc. issued a $500,000, 4-percent, 10-year bond payable at a price of 90 on January 1,

Question:

Jobs Inc. issued a $500,000, 4-percent, 10-year bond payable at a price of 90 on January 1, 2014. Journalize the following transactions for Jobs Inc.
Include an explanation for each entry.
a. Issuance of the bond payable on January 1, 2014.
b. Payment of semiannual interest and amortization of bond discount on July 1, 2014. Jobs uses the straight-line method to amortize the bond discount.