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Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $400,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Your answer is correct. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 750 T Bonds Payable 417505 July 1 TBonds Payable Interest Expense 10438 Cash T 12000 Dec. 31 TBonds Payable 1601 Interest Expense 0399 Interest Payable IT 12000 Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 7%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 383367 Bonds Payable 383367 July 1 Interest Expense 13418 Cash 12000 Bonds Payable 1418 Dec. 31 Interest Expense 14613 Bonds Payable 14613 | Interest Payable 12000 SHOW LIST OF ACCOUNTS LINK TO TEXT

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