Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $640,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 640000 Bonds Payable 640000 July 1 Bonds Payable Interest Expense Dec. 31 640000 Bonds Payable July 1 Bonds Payable Interest Expense ! Dec. 31 ! Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 6 %. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 July 1 Dec. 31 Record the journal entries relating to the bonds on January 1, July 1, and December when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) assuming that when the bonds were sold, the market interest rate was 7%. (Credit account titles are automatically indented Date Account Titles and Explanation Debit Credit Jan. 1 - July 1 Dec. 31