Brief Exercise 15-12 a-b (Part Level Submission) Sweetwood Company issues $5,000,000, 10-year, 9% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount.

(a)

	Your answer is correct.

Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1

Click if you would like to Show Work for this question:

Open Show Work

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT

Attempts: 1 of 3 used

(b)

Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31