Exercise 10-14 Tarawa Limited issued $740,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received is payable semi-annually on July 1 and January 1. Tarawa has a December 31 year end. $684,956 when the bonds were issued. Interest Your answer is correct. 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 Jan. 1 cash DebitCredit 684,956 Bonds Payable 684,956 SHOW LIST OF ACCOUNTS of interest on July 1. (Round answers to o decimal places, e.q. 5,275. Credit account titles are automatically indented entered. Do not indent manually) Date Account Titles and Explanation July 1 Interest Expense Debit Credit 20,549 Bonds Payable 2,049 Cash 18,500 Rounaanswerstoodeannarplaces e g S 275. Credit account titles are automaticallyndented when thearmoun Record the accrual orin erest on becembern entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 20,610 Bonds Payable 2,110 Interest Payable 18,500 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT x Your answer is incorrect. Try again. 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