Question 3 Ayayai Limited issued $300,000 of 7% bonds on January 1, 2020. The bonds are due on January 1, 2025, with interest payable each July 1 and January 1. The bonds are issued at 101. Ayayai Limited follows ASPE and records the amortization using the straight-line method. (a) Your answer is correct. Prepare the journal entry related to the bonds for January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1, 20207cach 303000||| T Bonds Payable 303000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (b) Prepare the journal entry related to the bonds for July 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation July 1, 2020 Interest Expense C Bonds Payable Cash 10500 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 0 of 3 used