Question
On August 1, 2025, Pina Colada Corp. issued $493,200, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Pina Colada's
On August 1, 2025, Pina Colada Corp. issued $493,200, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Pina Colada's year-end is December 31. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation E12025 Cash Debit 493,200 Credit Bonds Payable 493,200 Prepare the journal entry to record the accrual of interest on December 31, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation 31, 2025 Interest Expense Interest Payable Debit Credit
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