Sheridan Company issued $700,000 of 5-year, 6% bonds at 96 on January 1, 2020. The bonds pay interest annually.

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

Compute the total cost of borrowing for these bonds.

Total cost of borrowing

$

SHOW LIST OF ACCOUNTS

Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 103. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 103.

Total cost of borrowing

$

SHOW LIST OF ACCOUNTS