Help I S NEXT Your answer is partially correct. Try again. Avaya Corp. issued 1,
ID: 2336733 • Letter: H
Question
Help I S NEXT Your answer is partially correct. Try again. Avaya Corp. issued 1,000 5%, s-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the (o) Prepare the oumal entry to record the of these bonds on lanuary 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2017 10 (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are automatically study indented when amount is entered. Do not indent manually,) Debit Dec. 31, 2017 Interest Expense (c) Prepare the io do 802 PM
Explanation / Answer
Date Account Title and Explanation Debit Credit Jan, 1 2017 Cash 1000000 Bond Payable 1000000 (To record Bond Payable) Dec, 31 2017 Interest expense 50000 (1000000*.05) Interest Payable 50000 (To record Interest expense on bond) Jan, 1 2018 Interest Payable 50000 Cash 50000 (To record Interest paid)
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