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On January 1, 2017, Bramble Corporation issued $520,000 of 7% bonds, due in 10 years. The bonds were issued for $484,667, and pay interest each
On January 1, 2017, Bramble Corporation issued $520,000 of 7% bonds, due in 10 years. The bonds were issued for $484,667, and pay interest each July 1 and January 1 . Bramble uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answer to 0 decimal places, eg. 38,548. If no entry is required, select"No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017
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