Corporation issued

8%,

10-year

bonds with a face value of

$1,200,000

at a price of

93

on July 1,

2021.

The bonds pay interest each January 1 and July 1.

Salford

uses the straight-line amortization method for all bond premiums and discounts. The company has a fiscal year-end of December 31.Read the requirements

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Part 1

Requirement 1. Record the issuance of the bonds on July 1,

2021.

(Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit
2021
Jul 1

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Requirements

1.	Record the issuance of the bonds on July 1, 2021.
2.	Record the accrual for the cash interest payable on the bonds and the amortization of any premium or discount on the bonds on December 31, 2021.
3.	Show how the accounts related to the bonds issued on July 1, 2021, would be reported on Salford's balance sheet as of December 31, 2021.