Problem 10-3A (Part Level Submission) on May 1, 2017, Herron Corp. issued $600,0

Question

Problem 10-3A (Part Level Submission) on May 1, 2017, Herron Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2017, and pay interest annually on May 1. Financial statements are prepared annually on December 31. ? (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation May 1, 2017 Tcash Debit Credit 600,000 Bonds Payable 600,000 LINK TO TEXT LINK TO TEXT Attempts: 2 of 4 used

Explanation / Answer

01-May-17 Cash 600000         Bonds payable 600000 31-Dec-18 Interest expense 36000 (600000*9%*8/12)             Interest payable 36000

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