On January 1, 2024, Swifty Corp. issued five-year bonds with a face value of $650,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31, 2024 year end and records adjusting entries annually. Click here to view the factor table. (a) 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. Record journal entries in the order presented in the question statement. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.) Date Account Titles Jan. 1 Cash Debit 650000 Credit

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that ba…