Formosa Electric sold $400,000, 9%, 10-year bonds on January 1, 2014. The bonds were dated January 1 and paid interest…

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Formosa Electric sold $400,000, 9%, 10-year bonds on January 1, 2014. The bonds were dated January 1 and paid interest on January 1 and July 1. The bonds were sold at 105. (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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