Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31.

(a)	The issuance of these bonds on January 1.
(b)	The first interest payment on December 31.

References

Section BreakM10-11 Recording Bonds Issued at Face Value [LO 10-3]

7.

value: 0.90 points

Required information

M10-11 Part 1

1.	Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

References

eBook & Resources

Accounting EquationDifficulty: 2 Medium

M10-11 Part 1Learning Objective: 10-03 Analyze and record bond liability transactions.

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8.

value: 0.90 points

Required information

M10-11 Part 2

2.	Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)