Sanderling Corporation issued $400,000 of five-year 6% bonds at face value on August 1,2016.Interest is paid annually on July 31.
a)Prepare Sanderling's journal entry to record the issuance of the bonds.
b)Prepare Sanderling's adjusting entry required on 12/31/16.
c)Prepare Sanderling's entry to record the first interest payment on 7/31/17.

Question

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The Answer of Sanderling Corporation issued $400,000 of five-year 6% bonds at face value on August 1,2016.Interest is paid annually on July 31.
a)Prepare Sanderling's journal entry to record the issuance of the bonds.
b)Prepare Sanderling's adjusting entry required on 12/31/16.
c)Prepare Sanderling's entry to record the first interest payment on 7/31/17.

Sanderling Corporation Issued $400,000 of Five-Year 6% Bonds at Face