Problem:
On Jan. 1, 2009, Qix Corp. issued $477,000 of 7% bonds, due in 10 years. The bonds were issued for $444,589, and pay interest each July 1 and Jan 1. Qix uses the effective interest method.
Prepare the company's journal entries for
(a) the Jan 1 issuance,
(b) the July 1 interest payment, and
(c) the Dec 31 adjusting entry.
Assume an effective interest rate of 8%. (Round answer to 0 decimal places, i.e. 12,354. List multiple debit/credit entries in of magnitude.) Please show interest calculations for journal entries.