On January 1, 2017, Marin Corporation issued $690,000 of 9% bonds, due in 10 yea
ID: 2603852 • Letter: O
Question
On January 1, 2017, Marin Corporation issued $690,000 of 9% bonds, due in 10 years. The bonds were issued for $647,006, and pay interest each July 1 and January 1 Marin uses the effective-interest method Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective- interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decima places, e.g. 38,548..1 no enty s required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017Explanation / Answer
Journal entries :
Date accounts & explanation debit credit Jan 1, 2017 Cash a/c 647006 Discount on bonds payable a/c 42994 Bonds payable a/c 690000 (To record issuance of bonds payable) July 1,2017 Interest expenses a/c (647006*10%*6/12) 32350 Amortization of discount on bonds payable 1300 Cash a/c (690000*9%*6/12) 31050 (To record interest paid) Dec 31,2017 Interest expenses a/c (647006-1300*10%*6/12) 32285 Amortization of discount on bonds payable 1235 Cash a/c 31050 (To record adjusting entry)