On April 1, 2017, Carla Vista Company issued $930,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.

Prepare journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
 

(a)		The issuance of the bonds.
(b)		The payment of interest on July 1.
(c)		The accrual of interest on December 31.

 

	Date	Account Titles and Explanation	Debit	Credit
a	choose a transaction date	enter an account title to record the issuance of the bonds.	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of the bonds.	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of the bonds.	enter a debit amount	enter a credit amount
b	choose a transaction date	enter an account title to record the payment of interest	enter a debit amount	enter a credit amount
		enter an account title to record the payment of interest	enter a debit amount	enter a credit amount
c	choose a transaction date	enter an account title to record the accrual of interest	enter a debit amount	enter a credit amount
		enter an account title to record the accrual of interest

Answer rating: 100% (QA)

a The journal entry will be Date Explanation Debit Credit January 1 Cash Bond payable Interest pa... View the full answer