Andrews corporation issued 300,000 of 12%, 3-year bonds on january 1. Interest is payable semiannually on June 30 and December 312.. Andrews uses the straight-line methid of amortization.
a. Prepare the journal entry to record the issuance of the bonds if they are issued at 101. For a compound transcation, if an amount box does not require an entry, leave it blank.
b. Prepaer the journal entry to record the first payment of interest on june 30. For a compund transaction, if an amount box does not require an entry, leave it blank.
c. Will Andrews make the same interest payment entry on december 31?