Zillow Corp. issued 9.5% seven-year bonds payable with a face amount of $70,000 when the market...

Transcribed Image Text:

Zillow Corp. issued 9.5% seven-year bonds payable with a face amount of $70,000 when the market interest rate was 9.5%. Zillow's fiscal year-end on December 31. The bonds pay interest on January 1 and July 1. Read the requirement a. Issuance of the bonds payable at par on July 1, 2021 Journal Entry Date Accounts and Explanations Debit Credit 2021 Jul 1 Requirement Journalize the following transactions for Zillow. Include an explanation for each entry. a. Issuance of the bonds payable at par on July 1, 2021 b. Accrual of interest expense on December 31, 2021 c. Payment of cash interest on January 1, 2022 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Print Done Zillow Corp. issued 9.5% seven-year bonds payable with a face amount of $70,000 when the market interest rate was 9.5%. Zillow's fiscal year-end on December 31. The bonds pay interest on January 1 and July 1. Read the requirement a. Issuance of the bonds payable at par on July 1, 2021 Journal Entry Date Accounts and Explanations Debit Credit 2021 Jul 1 Requirement Journalize the following transactions for Zillow. Include an explanation for each entry. a. Issuance of the bonds payable at par on July 1, 2021 b. Accrual of interest expense on December 31, 2021 c. Payment of cash interest on January 1, 2022 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Print Done