Sheets,Inc.sold $1,000,000 of bonds at par on January 1,2016.The 4-year,6% bonds pay interest each year on December 31.Sheets incurred $35,000 in bond issue costs using GAAP.
Required: Prepare the journal entries to record the issuance of the bonds and the first annual interest payment.

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The Answer of Sheets,Inc.sold $1,000,000 of bonds at par on January 1,2016.The 4-year,6% bonds pay interest each year on December 31.Sheets incurred $35,000 in bond issue costs using GAAP.
Required: Prepare the journal entries to record the issuance of the bonds and the first annual interest payment.