Presented below are two independent situations.

1. On January 1, 2017, Oriole Company issued $168,000 of 7%, 10-years bonds at par. interest is payable quarterly on April 1, July 1, October 1, and January 1.

2. On June 1, 2017, waterway company issued $120,000 of 11%, 10-year bonds dated January 1 at per plus accrued interest. Interest is payable semiannually on July 1 and January 1.

For each of these two independent situation, prepare journal entries to record the following.

(a) The issuance of the bonds

(b) The payment of interest on July 1

(c) The accrual of interest on December 31

Date Account Titles and Explanation Debit Credit

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2. Waterway Company

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