Synergy Corporation is authorized to issue $1,090,000 of 4% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, 2016, and are due December 31, 2021.

Required:

Prepare the journal entries to record the following:

a.	January 1, 2016	Sold the bonds at par
b.	June 30, 2016	First interest payment
c.	December 31, 2016	Second interest payment

CHART OF ACCOUNTS

Synergy Corporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
255	Bonds Payable
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Prepare the journal entries to record the following:

a.	January 1, 2016	Sold the bonds at par
b.	June 30, 2016	First interest payment
c.	December 31, 2016	Second interest payment

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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