Question

Brief Exercise 14-2 The Bonita Company issued $210,000 of 10% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Bonita’s journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)

Answer 1

Date	Accounts	Debit	Credit
January 1, 2017	Cash	$210,000
	Bonds Payable		$210,000
July 1, 2017	Interest Expense (210000*10%*6/12)	$10,500
	Cash		$10,500
Dec 31, 2017	Interest Expense (210000*10%*6/12)	$10,500
	Interest Payable		$10,500