Powell Company issued a $900,000, 7%, 5-year bond payable at face value on January 1, 2018 Interest is paid semiannually on January 1 and July 1.

 

Requirement 1. Journalize the issuance of the bond payable on January 1, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry) Accounts and Explanation Debit Date Credit 2018 Jan. 1 Requirement 2. Journalize the payment of semiannual interest on July 1, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Date Accounts and Explanation Debit Credit 2018 Jul. 1