Pruitt Corporation issued 3,000, 8%, 5-year, $1,000 bonds dated January 1, 2010, at 100. (a) Prepare the

Question:

Pruitt Corporation issued 3,000, 8%, 5-year, $1,000 bonds dated January 1, 2010, at 100.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2010.

(b) Prepare the journal entry to record the first interest payment on July 1, 2010 (interest payable semiannually), assuming no previous accrual of interest.

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...