Exercise 10-8 (Part Level Submission) On August 1, 2017, Gonzaga Corporation issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Gonzaga's year-end is December 31. (a) Your answer is correct. Prepare journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 1 Cash 600000 Bonds Payable 600000 (b) Your answer is partially correct. Try again. Prepare journal entry to record the accrual of Interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense I 42,000 Interest Expense Interest Payable 42,000 42,000 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO. SIMILAR EXERCISE Attempts: 2 of 6 used