Question

Brief Exercise 10-10 Monty Corp. issued 1,900 5%, 9-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.) Debit Credit Date Account Titles and Explanation Jan. 1, 2023 Click if you Lould like to show Talork for this aestion. Onan Show Work

Answer 1

Date	Account Title and Explanation	Debit	Credit
Jan 1, 2022	Cash	$1,900,000	-
	Bonds payable	-	$1,900,000
	(To record bonds issued)
Dec 31, 2022	Interest expense (1,900 X $1,000 X 5%)	$95,000	-
	Interest payable	-	$95,000
	(To record interest expense)
Jan 1, 2023	Interest payable	$95,000	-
	Cash	-	$95,000
	(To record interest paid)