On February $1,$ Year $1,$ a company issued $9\%$ bonds, dated February $1,$ with a face amount of $$780,000.$

The bonds sold for $$713,083$ and mature on January $31,$ Year $21(20$ years$).$

The market yield for bonds of similar risk and maturity was $10\%.$

Interest is paid semiannually on July $31$ and January $31.$

The company's fiscal year ends December $31.$

Required:

to $4.$ Prepare the journal entries to record their issuance by the company on February $1,$ Year $1,$ interest on July $31,$ Year $1($at the effective rate$),$ adjusting entry to accrue interest on December $31,$ Year $1$ and interest on January $31,$ Year $2.$

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

$(2)$

$(3)$

$(4)$

Record the issuance of the bond on February $1,$ Year $1.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$February $01,$ Year $1,$Cash,$713,083,],[,$Discount on bonds payable,$66,917,],[,$Bonds payable,,$780,000],[,,,],[,,,],[,,,]]$

On February $1,$ Year $1,$ a company issued $9\%$ bonds, dated February $1,$ with a face amount of $$780,000.$

The bonds sold for $$713,083$ and mature on January $31,$ Year $21(20$ years$).$

The market yield for bonds of similar risk and maturity was $10\%.$

Interest is paid semiannually on July $31$ and January $31.$

The company's fiscal year ends December $31.$

Required:

to $4.$ Prepare the journal entries to record their issuance by the company on February $1,$ Year $1,$ interest on July $31,$ Year $1($at the effective rate$),$ adjusting entry to accrue interest on December $31,$ Year $1$ and interest on January $31,$ Year $2.$

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$(1)$

$2$

$(3)$

$4$

Record the interest on July $31,$ Year $1($at the effective rate$).$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $31,$ Year $1,$Interest expense,$35,654,],[,$Discount on bonds payable,,$],[,$Cash,,$],[,,,],[,,,],[,,,],[,,,]]$

On February $1,$ Year $1,$ a company issued $9\%$ bonds, dated February $1,$ with a face amount of $$780,000.$

The bonds sold for $$713,083$ and mature on January $31,$ Year $21(20$ years$).$

The market yield for bonds of similar risk and maturity was $10\%.$

Interest is paid semiannually on July $31$ and January $31.$

The company's fiscal year ends December $31.$

Required:

to $4.$ Prepare the journal entries to record their issuance by the company on February $1,$ Year $1,$ interest on July $31,$ Year $1($at the effective rate$),$ adjusting entry to accrue interest on December $31.$ Year $1$ and interest on January $31,$ Year $2.$

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the interest on January $31,$ Year $2.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $31,$ Year $2,$Interest expense,$5,947,],[,$Interest payable,$29,250,],[,$Discount on bonds payable,,$97],[10,$Cash,,$35,100],[,,,],[,-,,]]$