Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1, 2013, at face value.

Question:

Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1, 2013, at face value. Interest is payable each December 31. Show the accounting equation effects and prepare journal entries for (a) the issuance of these bonds on January 1, 2013, and (b) the interest payment on December 31, 2013.