Question

Brief Exercise 10-10 Indigo Corporation issued 3,000 8%, 6-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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2022 (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.) Debit Credit Date Account Titles and Explanation Dec. 31, 2022 (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

Answer 1

Answer:

Date	Account Titles and Explanation	Debit ($)	Credit ($)
Jan-1-22	Cash	$3,000,000		=3000*1000
	Bonds payable		$3,000,000
Dec-31-22	Interest expense	$240,000		=3000000*8%
	Interest payable		$240,000
Jan-1-23	Interest payable	$240,000
	Cash		$240,000