Exercise K10-8 On August 1, 2017, Ayayai Corp. issued $480,000, 6%, 10-year bonds at face value. Interest is payable annually on August 1, Ayayai's year-end is December 31. 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 Bonds Payable SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE 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 Debit Credit Dec. 31 Interest Expense Cash Prepare journal entry to record the payment of interest on August 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit Aug. 1 Interest Expense Interest Payable Discount on Bonds Payable