Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK NE 1. On January 1, 2020, Oriole Company issued $408,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1, 2020, Waterway Company issued $360,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (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 Oriole Company: Debit Credit Tu/1/20 Tcash 408000T T Bonds Payable 408000 20גול interest Expense, 9180 T 1 1 Cash 11 IT 9180 TIL T12/31/20 Interest Expense 9180 T 9180 2. 7/1/20 Interest Payable Waterway Company: cash 379800

Answer 1

6/1/20	Cash	$376500
	Bonds Payable		$360000
	Interest Expense ($360000 * 11% * 5/12)		$16500