Dailey Company issued $655,500,9%,15-year bonds on December 31, 2013, for $629,280. Interest is payable annually on December 31. Dailey uses the straight-line method to amortize bond premium or discount.

Prepare the journal entries to record the following events.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)	The issuance of the bonds.
(b)	The payment of interest and the discount amortization on December 31, 2014.
(c)	The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

No.

Date

Account Titles and Explanation

Debit

Credit

(a)

Dec. 31, 2013

(b)

Dec. 31, 2013Dec. 31, 2014Dec. 31, 2028Dec. 31, 2029

(c)

Dec. 31, 2013Dec. 31, 2014Dec. 31, 2028Dec. 31, 2029

Brief Exercise 10-17 (Part Level Submission) Oxford Inc. issues $5.83million,5-year,10% bonds at103, with interest payable on January 1. The straight-line method is used to amortize bond premium.

(a)

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Prepare the journal entry to record the sale of these bonds on January 1, 2014.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit