On January 1, 2017, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. 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. Assume an effective-interest rate of 8%.
