Question
Swifty Corporation issued 3,100 5%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the
Swifty Corporation issued 3,100 5%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date Jan. Account Titles and Explanation 1. 2025 Cash Bonds Payable Debit Credit (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation. Dec. 31, Interest Expense 2025 Interest Payable Debit Credit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Jan. 1, Interest Payable 2026 Cash Debit Credit
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