On January 1 2017 Marin Corporation issued 690000 of 9 bonds

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 O decima places, e.g. 38,548..1 no enty s 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

Solution

Journal entries :

Date	accounts & explanation	debit	credit
Jan 1, 2017	Cash a/c	647006
	Discount on bonds payable a/c	42994
	Bonds payable a/c		690000
	(To record issuance of bonds payable)
July 1,2017	Interest expenses a/c (647006*10%*6/12)	32350
	Amortization of discount on bonds payable		1300
	Cash a/c (690000*9%*6/12)		31050
	(To record interest paid)
Dec 31,2017	Interest expenses a/c (647006-1300*10%*6/12)	32285
	Amortization of discount on bonds payable		1235
	Cash a/c		31050
	(To record adjusting entry)