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On January​ 31, 018​, Driftwood ​Logistics, Inc., issued five​-year, 2​% bonds payable with a face value of $11,000,000. The bonds were issued at 94 and pay interest on January 31 and July 31. Driftwood Logistics amortizes bond discounts using the​ straight-line method.Read the requirement

a. Record the issuance of the bond payable on January​ 31, 2018.

​ (Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Journal Entry

Date

Accounts

Debit

Credit

Jan

31

Cash

Discount on Bonds Payable

Bonds Payable

b. Record the payment of semiannual interest and amortization of bond discount on July​ 31,

20182018.

Journal Entry

Date

Accounts

Debit

Credit

July

31

Interest Expense

Discount on Bonds Payable

Cash

c. Record the interest accrual and discount amortization on December​ 31, 2018. ​(Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole​ dollar.)

Journal Entry

Date

Accounts

Debit

Credit

Dec

31

Interest Expense

Discount on Bonds Payable

Interest Payable

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