Exercise 10-8 (Part Level Submission) On August 1, 2017, Cheyenne Corp. issued $

Question

Exercise 10-8 (Part Level Submission) On August 1, 2017, Cheyenne Corp. issued $484,800, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Cheyenne's year-end is December 31. (a) Your answer is correct. Prepare 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 Aug. 1 Cash 484800 Bonds Payable 484800 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLSVIDEO: SIMI LAR EXERCISE Attempts: 1 of 5 used (b) Prepare journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Dec. 31

Explanation / Answer

Journal

Date Account Name Debit Credit Dec 31 Interest expense ($484800 x 6% x 5/12) $12120 Interest payable $12120

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