Question

FULL SCREEN PRINTER VERSION CALCULATOR BACK DURCES Question 2 Sheridan Company issued 2,200, 6 % , 5-year , $1,000 bonds dated January 1, 2019, at 100. Interest is pald each January 1 Prepare the journal entry to record the sale of these bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 I Study Prepare the adjusting journal entry on December 31, 2019, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation Credit Dec. 31

Answer 1

Date	Accounts and explanation	Debit(in $)	Credit(in $)
01-Jan-19	Cash	$22,00,000
	Bonds Payable		$22,00,000
31-Dec-19	Interest expenses($2,200,000*6%)	$1,32,000
	Interest Payable		$1,32,000
01-Jan-20	Interest Payable	$1,32,000
	Cash		$1,32,000