17. On February rn1, Clayton Co. issued $1,300,000 of 20-year, 2% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:

1. a). Issuance of the bonds.
2. b). Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method. Round to the nearest dollar when necessary.

Answer rating: 100% (QA)

Answer Requirement a Date Accounts title Debit Credit 01Aug Cash 122500000 Discount on Bonds Pa... View the full answer