Prepare journal entries to record the accrual of interest

Reference no: EM131830738

Question: On August 1, 2017, Gonzaga Corporation issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Gonzaga's year-end is December 31.

Instructions: Prepare journal entries to record the following events.

(a) The issuance of the bonds.

(b) The accrual of interest on December 31, 2017.

Reference no: EM131830738

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