10

On January 1, Skysong Company issued $290,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Skysong's year-end is December 31. (a) Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Jan. 1 (b) Date Cash Dec. 31 Bonds Payable Debit Account Titles and Explanation Interest Expense 290,000 Prepare the journal entry to record the annual accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Credit Debit 290,000 Credit indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Dec. 31 (c) Interest Expense Interest Payable Jan. 1 Date Account Titles and Explanation Prepare the journal entry to record the payment of interest on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Interest Payable Cash Debit eTextbook and Media Credit Debit Credit