Question

Brief Exercise 14-2 Your answer is partially correct. Try again. The Waterway Company issued $310,000 of 13% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Waterway's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 Cash 310,000 | Bonds Payable 310,000 (b) Tju July 1, 2017 1 Interest Expense 20150 Interest Payable IT 20150 (c) Dec. 31, 2017 Interest Expense 20150|| Interest Payable 20150

Answer 1

On July 1 there is interest PAYMENT and December 31 is the date to record ADJUSTING ENTRY.

journal entry:

date	account title	debit	credit
July 1, 2017	interest expense cash	$20150 .	. $20150