On January 1, 2017, Sage Corporation issued $500,000 of 7% bonds, due in 10 years, The bonds were issued for $ 466,026 and pay interest each July 1 and January 1 sage 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. Assurance an and effective interest rate 8%.

No Date Account Titles and Explanation Debit Credit

(a) Jan 1 2017 _______________________________ _____________________ _____________________

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(b)_______________ _____________________________ _______________________ _____________________

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(c) ________ ___________________________ ___________________________ _____________________________

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