Question

Kingbird, Inc. issued 3,300,7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Your answer is partially correct. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 cash Bonds Payable e Textbook and Media List of Accounts Your answer is partially correct. Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense Interest Payable e Textbook and Media List of Accounts Your answer is partially correct. Prepare the journal entry on January 1, 2021, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Interest Payable Cash

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Jan 1	Cash	3300000
	Bonds payable		3300000
Dec 31	Interest expense (3300000*7%)	231000
	Interest payable		231000
Jan 1	Interest payable	231000
	Cash		231000