On January 1, 2017, Sarasota Corporation issued $650,000 of 9% bonds, due in 10 years. The bonds were issued for $609,499, and pay interest each July 1 and January 1. Sarasota uses the effective-interest method. Prepare the companys 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 10%

No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 Cash 591500 Discount on Bonds Payable 58500 Bonds Payable 650000 (b) July 1, 2017 Interest Expense Discount on Bonds Payable Ca (C) Dec. 31, 2017 v Interest Expense Discount on Bonds Payable Interest Payable