Question

On January 1, 2021, White Water issues $560,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year Required: Assuming the market interest rate on the issue date is 6%, the bonds will issue at $560,000. Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the issuance of the bond. Note: Enter debits before credits < Prev 8 of 13 Next > Search

Answer 1

No.	Date	Account and Explanation	Debit	Credit
1	Jan. 01. 2021	Cash	$560,000
		Bond Payable		$560,000
		(To record the issue of bonds)
2	Dec. 31, 2021	Interest expense                              [$560,000 x 6%]	$33,600
		Cash		$33,600
		(To record interest expense)
3	Dec. 31, 2022	Interest expense                              [$560,000 x 6%]	$33,600
		Cash		$33,600
		(To record interest expense)