Bramble Corp. issued 3,400 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2022enter an account title for the journal entry on January 1,2017enter a debit amountenter a credit amount enter an account title for the journal entry on January 1,2017enter a debit amountenter a credit amount(b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 31, 2022enter an account title for the journal entry on December 31,2017enter a debit amountenter a credit amount enter an account title for the journal entry on December 31,2017enter a debit amountenter a credit amount(c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2023enter an account title for the journal entry on January 1,2018enter a debit amountenter a credit amount enter an account title for the journal entry on January 1,2018

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Asked Dec 6, 2019
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Bramble Corp. issued 3,400 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2022
enter an account title for the journal entry on January 1,2017
enter a debit amount
enter a credit amount
 
enter an account title for the journal entry on January 1,2017
enter a debit amount
enter a credit amount


(b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2022
enter an account title for the journal entry on December 31,2017
enter a debit amount
enter a credit amount
 
enter an account title for the journal entry on December 31,2017
enter a debit amount
enter a credit amount


(c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2023
enter an account title for the journal entry on January 1,2018
enter a debit amount
enter a credit amount
 
enter an account title for the journal entry on January 1,2018
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Expert Answer

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Bond Interest = 9% No of Units issued = 3400 Issue price per bond = $1,000 Therefore, total bond value = 3400*1000 = $3,400,000 %3D Interest Value = Face Value * Interest p.a. = 3400000*9% = $ 306,000

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