Question: Type or paste question here On January 1, 2017, Tamarisk Inc. issued $500,000 of 7%, 5-year bonds at par. Interest is payable semiannually on July

Type or paste question here

On January 1, 2017, Tamarisk Inc. issued $500,000 of 7%, 5-year bonds at par. 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

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

enter a debit amount

enter a credit amount

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

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