Brief Exercise 14-6

On January 1, 2017, Sheridan Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were issued for $624,235, and pay interest each July 1 and January 1. Sheridan uses the effective-interest method. Prepare the companys journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)