Question

Riverbed Corp issued 2,300 6%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022.

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022	enter an account title for the journal entry on January 1,2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1,2017	enter a debit amount	enter a credit amount

(b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022	enter an account title for the journal entry on December 31,2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31,2017	enter a debit amount	enter a credit amount

(c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2023	enter an account title for the journal entry on January 1,2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1,2018	enter a debit amount	enter a credit amount

Answer 1

solution No Date Delet Credit Jarl, 2022 2300000 | Account title & Explanation Cash C2300 x1000) Bonds payable [ To record the sale of 2300000 1 bonds] b) Dec 31, 2022 138000 138000 Interest Experse [2300000 x 6%] Interest payable [ To record the adjusting entry for Interest Interest payable cash [ To record the Interest paid 1 c) Jarl, 2023 138000 138000