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Pronghorn Corp issued 2,200 9%, 5-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amo is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Cash 2200 Bonds Payable 2200 (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are automatically indented whe amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Interest Expense 990 Interest Payable 990 (c) Prepare the journal entry on January 1, 2018, 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, 2018 Interest Payable 990 Cash 990

Pronghorn Corp issued 2,200 9%, 5-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amo is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Cash 2200 Bonds Payable 2200 (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are automatically indented whe amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Interest Expense 990 Interest Payable 990 (c) Prepare the journal entry on January 1, 2018, 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, 2018 Interest Payable 990 Cash 990

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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--- ## Brief Exercise 10-10 ### Pronghorn Corp issued 2,200 9%, 5-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. --- ### (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) **Date:** January 1, 2017 | Account Titles and Explanation | Debit | Credit | |--------------------------------|-------|--------| | Cash | 2200 | | | Bonds Payable | | 2200 | --- ### (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) **Date:** December 31, 2017 | Account Titles and Explanation | Debit | Credit | |--------------------------------|-------|--------| | Interest Expense | 990 | | | Interest Payable | | 990 | --- ### (c) Prepare the journal entry on January 1, 2018, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) **Date:** January 1, 2018 | Account Titles and Explanation | Debit | Credit | |--------------------------------|-------|--------| | Interest Payable | 990 | | | Cash | | 990 | --- ### Explanation of Graphs or Diagrams: - **Table of Journal Entries:** The tables provide a structured format to list the Account Titles and Explanation in the first column, followed by two columns for the Debit and Credit entries respectively. In each table: - Specific dates are highlighted to signify the date of the journal entry. - Debit entries are marked clearly in the Debit column and similarly for Credit entries in the Credit column. Remember to always match your debits and credits to ensure your ledger remains balanced. ---
Transcribed Image Text:--- ## Brief Exercise 10-10 ### Pronghorn Corp issued 2,200 9%, 5-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. --- ### (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) **Date:** January 1, 2017 | Account Titles and Explanation | Debit | Credit | |--------------------------------|-------|--------| | Cash | 2200 | | | Bonds Payable | | 2200 | --- ### (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) **Date:** December 31, 2017 | Account Titles and Explanation | Debit | Credit | |--------------------------------|-------|--------| | Interest Expense | 990 | | | Interest Payable | | 990 | --- ### (c) Prepare the journal entry on January 1, 2018, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) **Date:** January 1, 2018 | Account Titles and Explanation | Debit | Credit | |--------------------------------|-------|--------| | Interest Payable | 990 | | | Cash | | 990 | --- ### Explanation of Graphs or Diagrams: - **Table of Journal Entries:** The tables provide a structured format to list the Account Titles and Explanation in the first column, followed by two columns for the Debit and Credit entries respectively. In each table: - Specific dates are highlighted to signify the date of the journal entry. - Debit entries are marked clearly in the Debit column and similarly for Credit entries in the Credit column. Remember to always match your debits and credits to ensure your ledger remains balanced. ---
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