Presented below are two independent situations. On January 1, 2017, Oriole Company issued $168,000 of 7%, 10-years bonds at par.

Presented below are two independent situations.

1. On January 1, 2017, Oriole Company issued $168,000 of 7%, 10-years bonds at par.  interest is payable  quarterly on April 1, July 1, October 1, and January 1.

2.  On June 1, 2017, waterway company issued $120,000 of 11%, 10-year bonds dated January 1 at per plus accrued interest.  Interest  is payable semiannually on July 1 and January 1.

For each of these two independent situation, prepare journal entries to record the following.

(a) The issuance of the bonds

(b) The payment of interest on July 1

(c) The accrual of interest on December 31

Date                                  Account Titles and Explanation                               Debit                                                  Credit

________                            _______________________________________                  ______________________                         ___________________

                                          _____________________________________                   _________________________                      __________________

___________                          ___________________________________                  ___________________________                   ___________________

                                          _________________________________                        __________________________                      ______________________

____________                    ________________________________                        _________________________                    _____________________________

                                         _____________________________                             ___________________________                    _______________________________

                                       __________________________                                       ______________________                     __________________________________

2.        Waterway Company

__________________                _________________________                                    ___________________                    _______________________________

                                              ___________________________                                _____________________                  ____________________________

                                           ______________________________                                ______________________                  ___________________________

____________________                ________________________                                        ____________________               ___________________________________

                                                   _________________________                                   ______________________             ___________________________________

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