Make the journal entry to record the accrual of interest

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Sandhill Company issued $308,000 of 8%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1.
The journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date                   Account Titles and Explanation            Debit        Credit
Jan. 1, 2020             Cash                                           308000
                         Bonds Payable                                                308000

Problem 1: Prepare the journal entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM132701845

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