Prepare the journal entry to record the accrual of interest

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Question - 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

Required - Prepare the journal entry to record the accrual of interest on December 31, 2020.

Reference no: EM132755547

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