Briet Exercise 161 On lanuary 1, 2017, Maris Enterprises issued 9%, S-year bonds

Question

Briet Exercise 161 On lanuary 1, 2017, Maris Enterprises issued 9%, S-year bonds with a face amount of S800, 000 at par. Interest is payable annually on Jauary 1 the entries to record the issuance of the bonds and the first annual interest accrual on December 31.(Cresdit account titles are automatically indlenterd when the amount is entered. Do not indent manually Date Account Titles and Explanation Debet Credit Jan. 1 ssion) Dec. 31 Click if you would like to Show Work for this question: Open Show Wok LNK TO TEXT Question Attempts: 0 of 15 used SAVE FOR LATIER

Explanation / Answer

Date Account Titles and Explanation Debit ($) Credit ($) Jan 1 Cash        800,000        Bonds Payable        800,000 (Bonds issued) Dec 31 Interest expenses          72,000        Interest Payable          72,000 ($800,000 × .09 = $72,000) (Interest accrued)

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