Exercise #1:

Sportswear Company issues $10,000,000, 20-year, 8% bonds at par. The bonds are sold January 1, 2017, and pay interest every January 1. Prepare all necessary journal entries for the year 2017.

Exercise #2:

Sportswear Company issues $20,000,000 of 10-year, 9% bonds on March 1, 2017 at par plus accrued interest. The bonds are dated January 1, 2017, and pay interest on June 30 and December 31. Prepare all journal entries for the year 2017.