On January 1, 2021, Sunland Corp. issued five-year bonds with a face value of $300,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Click here to view factor tables.

We can calculate the future value of a single amount using the formula below, where n equals the number of periods since making or receiving that payment:

Future value of single payment=Present value of a single payment(1+Interest rate)n

By using this formula, the future value of a single payment can be determined at various times, as seen in Illustration 10A.7:

Jan. 1, 2021	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2024
$100	$110	$121	$133	$146
|	|	|	|	|
	$100 1.101	$100 1.102	$100 1.103	$100 1.104
	= $100 1.10	= $100 1.21	= $100 1.33	= $100 1.46

Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1July 1Dec. 31	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
Jan. 1July 1Dec. 31	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
Jan. 1July 1Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount