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Exercise 10-13 | Ivanhoe Company issued $430,00 0 of 10%, 15-year bonds on Janua

ID: 2807658 • Letter: E

Question

Exercise 10-13 | Ivanhoe Company issued $430,00 0 of 10%, 15-year bonds on January 1, 2017, at face value. Interest is payable annually on January 1. l entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not in manuaily Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented not indent manually.) when amount is e Date Account Titles and Explanation Debit Credit Dec. 31, 2017 SHOW LIST OF ACCOUNTS

Explanation / Answer

Exercise 10-13

Cash a/c................Dr $430,000

To Bonds Payable a/c….....… $430,000

December 31, 2017

Cash a/c…….......Dr $43,000

To Interest payable a/c…......…$ $43,000