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On January 1,2019, Smalls, Inc. issued $60,000 of its 12-year 10% bonds for $52,584. a....

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Accounting

On January 1,2019, Smalls, Inc. issued $60,000 of its 12-year 10% bonds for $52,584. a. Prepare the entries to record the issuance of the bonds on January 1.
General Journal Instructions
GENERAL JOURNALb. Prepare the journal entry to record interest expense in 2020 using the effective interest method on December 31.
General Journal Instructionsc. Prepare the journal entry to record interest expense in 2020 using the straight-line method on December 31.
General Journal Instructions
PAGE 1
GENERAL JOURNAL
\table[[,DATE,,POST. REF.,DEBIT,CREDIT],[1,Dec. 31,Interest Expense,,6,618.00,],[2,,Discount on Bonds Payable,,,],[3,,Cash,,6,000.00,],[4,Dec. 31,Deferred Debt Issuance Costs,,,],[5,,,,,],[,,,,,]]Interest is payable annually and the effective yield was 12%. Costs connected with the issue totaled $3,200.
Required:
a. Prepare the entry to record the issuance of the bonds.
b. Prepare the journal entry to record interest expense in 2020 using the effective interest method.
c. Prepare the journal entry to record interest expense in 2020 using the straight-line method.
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