Question

Required information The following information applies to the questions displayed below.) Schlitterbahn Waterslide Company issued 27,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31 (a) The issuance of these bonds on January 1. (b) The first interest payment on December 31. Print 2. Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) References View transaction list Journal entry worksheet Schlitterbahn Waterslide Company issued 27,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. Record the issuance of 27,000 bonds at face value for $100 each

Answer 1

Journal entry

date	account and explanation	Debit	Credit
Jan 1	Cash	2700000
	Bonds payable		2700000
	(To record bond issue)
Dec 31	Interest expense (2700000*5%)	135000
	Cash		135000
	(To record interest)