On January 1, 2015, Schultz Corporation Issued $100,000 of Its

Essay

On January 1, 2015, Schultz Corporation issued $100,000 of its ten-year, 6% bonds payable at $98,000. The bonds were dated January 1, 2015, and interest is paid each December 31.
Required:
A. Prepare the journal entry for the sale of the bonds.
B. Prepare the journal entry to record the first interest payment. Assume straight-line amortization and no adjusting journal entries were made during the year.