On January 1, 2018, Irik Corporation issued $1,700,000 face value, 7%, 10-year bonds at $1,585,929. This price resulted in an effective-interest rate of 8% on the bonds. The bonds pay annual interest, each January 1.

Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

	Account Titles and Explanation	Debit	Credit
Jan. 1, 2018	enter an account title to record the issue of the bonds on January 1, 2018	enter a debit amount	enter a credit amount
	enter an account title to record the issue of the bonds on January 1, 2018	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare an amortization table through December 31, 2021 (three interest periods) for this bond issue. December 31 is the companys year-end. (Round answers to the nearest whole dollar, e.g. 5,275.)

IRIK CORPORATION Bond Discount Amortization Effective-Interest Method - Annual Interest Payments
Annual Interest Periods	Interest to Be Paid	Interest Expense to Be Recorded	Discount Amor- tization	Unamor- tized Discount	Bond Carrying Amount
Issue dateJan. 1/18				$enter a dollar amount rounded to the nearest whole	$enter a dollar amount
1 - Jan. 1/19	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	enter a dollar amount	enter a dollar amount
2 - Jan. 1/20	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
3 - Jan. 1/21	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount

eTextbook and Media

List of Accounts

Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2018	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2018	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare the journal entry to record the payment of interest on January 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2019	enter an account title to record the payment of interest on January 1, 2019	enter a debit amount	enter a credit amount
	enter an account title to record the payment of interest on January 1, 2019	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2019	enter an account title for the journal entry on December 31, 2019	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2019	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2019	enter a debit amount	enter a credit amount