Reference no: EM131969558

On January 1, 2017, Coronado Corporation issued $680,000 of 9% bonds, due in 8 years. The bonds were issued for $643,151, and pay interest each July 1 and January 1. Coronado 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 0 decimal places, e.g. 38,548. If no entry is 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.)

Accumulated Depreciation-Equipment

Accumulated Depreciation-Machinery

Allowance for Doubtful Accounts

Bad Debt Expense

Bond Issue Expense

Bonds Payable

Buildings

Cash

Common Stock

Debt Investments

Depreciation Expense

Discount on Bonds Payable

Discount on Notes Payable

Discount on Notes Receivable

Equipment

Equity Investments

Gain on Disposal of Machinery

Gain on Disposal of Land

Gain on Disposal of Plant Assets

Gain on Redemption of Bonds

Gain on Restructuring of Debt

Gain on Sale of Machinery

Interest Expense

Interest Payable

Interest Receivable

Interest Revenue

Land

Loss on Disposal of Land

Loss on Redemption of Bonds

Machinery

Mortgage Payable

No Entry

Notes Payable

Notes Receivable

Paid-in Capital in Excess of Par - Common Stock

Paid-in Capital in Excess of Par - Preferred Stock

Premium on Bonds Payable

Sales Revenue

Unamortized Bond Issue Costs

Unearned Revenue

Unearned Sales Revenue

Unrealized Holding Gain or Loss - Income