Question - On August 1, 2014 Ortega Corporation issued $880,800, 9%, 10 year bonds at face value. Interest is payable annually on August 1. Ortega's year end is December 31.
Prepare journal entries to record the issuance of the bonds.
Prepare journal entries to record the accrual of interest on December 31, 2014.
Prepare journal entries to record the payment of interest on August 1, 2015.