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Check my work On January 1, 2021, White Water issues $490,000 of 5 % bonds, due in 15 years, with interest payable annually o
On January 1, 2021, White Water issues $490,000 of 5 % bonds, due in 15 years, with interest payable annually on December 31
On January 1, 2021, White Water issues $490,000 of 5 % bonds , due in 15 years, with interest payable annually on December 31
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Journal entries

date account and explanation Debit Credit
Jan 1, 2021 cash 490000
Bonds payable 490000
(To record bond issue)
Dec 31, 2021 Interest expense (490000*5%) 24500
Cash 24500
(To record interest)
Dec 31,2022 Interest expense 24500
Cash 24500
(To record interest)
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