Your answer is partially correct Try again On January 1 2017

Your answer is partially correct. Try again On January 1, 2017, Marin Corporation issued $690,000 of 9% bonds, due in 10 years. The bonds were issued for $647,006, and pay interest each July 1 and January 1 Marin 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.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 Cash 647006 Discount on Bonds Payable 42994 Bonds Payable 690000 (b)T July 1, 2017 Interest Expense 32350 Discount on Bonds Payable 1300 Cash 31050 (c) T Dec. 31, 2017 Interest Expense 32285 Discount on Bonds Payable 1235 Interest Payable 31050

Solution

c Dec-31-17 Interest expense 32415 =(647006+1300)*10%/2         Discount on Bonds payable 1365         Interest payable 31050