On January 1, 2011, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds

Question:

On January 1, 2011, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. JWS uses the effective-interest method. Prepare the company’s journal entries for

(a) The January 1 issuance,

(b) The July 1 interest payment, and

Bonds
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