Sheridan Company issues $$6,000,000,10-$year, $14\%$ bonds at $98,$ with interest payable annually on January $1.$ The straight$-$line

method is used to amortize bond discount.

$($a$)$

Prepare the journal entry to record the sale of these bonds on January $1,2027.($Credit account titles are automatically indented

when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

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List of Accounts

Attempts: $0$ of $5$ used

$($b$).$

Prepare the adjusting journal entry to record interest expense and bond discount amortization on December $31,2027.($Credit

account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31$