Exercise 10-14 Tarawa Limited issued $1,340,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $1,240,326 when the bonds were issued. Interest is payable semi- annually on July 1 and January 1. Tarawa has a December 31 year end. Your answer is partially correct. Try again. Record the issue of the bonds on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 1240326 T Bonds Payable 99674 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Record the payment of interest on July 1. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Interest Payable 33500 Cash IT 33500 SHOW LIST OF ACCOUNTS LINK TO TEXT x Your answer is incorrect. Try again. Record the accrual of interest on December 31. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 311 SHOW LIST OF ACCOUNTS LINK TO TEXT x Your answer is incorrect. Try again. Prove the amount of cash received when the bonds were sold by determining the bonds' present value (issue price) on January 1, 2018. Prove the carrying amount of the bonds, one year later, by determining the present value of the bonds at that time. (Round answers to O decimal places, e.g. 5,275.) Bonds' present value (issue price) on January 1, 2018 Present value of the bonds SHOW LIST OF ACCOUNTS LINK TO TEXT