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On January 1, 2025, Waterway Corporation issued $670,000 of 9% bonds, due in 10 years. The bonds were issued for $628,252, and pay interest
On January 1, 2025, Waterway Corporation issued $670,000 of 9% bonds, due in 10 years. The bonds were issued for $628,252, and pay interest each July 1 and January 1. Waterway 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. Assume an effective-interest rate of 10%. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 1.1,2025 Cash 1,2025 Discount on Bonds Payable Bonds Payable Interest Expense Cash Discount on Bonds Payable 31.2025 Interest Expense Interest Payable Discount on Bonds Payable Debit Credit 670000
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