On January 1, 2009, Qix Corporation issued $400,000 of 7% bonds, due in 10 years. The bonds

Question:

On January 1, 2009, Qix Corporation issued $400,000 of 7% bonds, due in 10 years. The bonds were issued for $372,816, and pay interest each July 1 and January 1. Qix uses the effective interest method. Prepare the company’s journal entries for

(a) The January 1 issuance,

(b) The July 1 interest payment, and

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...