Answer Happy

Account Name List:
Problem (selections go into "Account Name"):
Cash Inventory Equipment Land Deferred Revenue Bonds Payable Discount on Bonds Payable Discount and Debt Issuance Costs Premium on Bonds Payable Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment-Note Payable Interest Payable Common Stock Paid-in Capital in Excess of Par—Common Stock Paid-in Capital-Stock Warrants Retained Earnings—Prior Period Adjustment Debt Conversion Expense Interest Expense Loss on Redemption of Bonds Gain on Redemption of Bonds Unrealized Gain or Loss-Income Unrealized Gain or Loss—OCI
Yale Corporation issued to Zap Corporation $48,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Assume that the company uses the effective interest amortization method and bond issuance costs are $1,200. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date Account Name Dr. . Cr. a. Jan. 1 0 0 0 A A 0 0 0 To record bond issuance. b. June 30 A 0 0 0 0 A 4 0 0 To record interest payment.