On January 1, 2014, Lock Corporation issued $1,852,000face value,8%,10- year bonds at $1,733,145. This price resulted in an effective-interest rate of9% on the bonds. Lock uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.

(a)

Prepare the journal entry to record the issuance of the bonds on January 1, 2014.(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

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