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  3. on january 1, 2020, waterway corporation issued $4

On January 1, 2020, Waterway Corporation issued $490000 of 7% bonds, due in 8 years....

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Accounting

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On January 1, 2020, Waterway Corporation issued $490000 of 7% bonds, due in 8 years. The bonds were issued for $520776, and pay interest each July 1 and January 1. The effective interest rate is 6%. 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. Waterway uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O 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

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