On August 1, 2014, Ortega Corporation issued $600,000, 7%, 10-year bonds at face value. Interest is payable

Question:

On August 1, 2014, Ortega issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Ortega’s year-end is December 31.

Instructions
Prepare journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest on December 31, 2014.
(c) The payment of interest on August 1, 2015.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...