On January 1, 2020, Larkspur, Inc. issued $451,500, 12%, 10-year bonds at face value. Interest is payable annually on January 1.

Exercise 10-09 (Video) Your answer is partially correct. Try again. On January 1, 2020, Larkspur, Inc. issued $451,500, 12%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 451000 Bonds Payable 4510001 Prepare the journal entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 54180 Cash 54180 (c) Prepare the journal entry to record the payment of interest on January 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Interest Expense 54810 X Interest Payable 54810