Response to the following problem:
The board of directors of Alpha Communications authorizes the issuance of $3 million of 9%, 20-year bonds payable. The semiannual interest dates are March 31 and September 30. The bonds are issued on April 30, 20X4, at par.
1. Journalize the following transactions:
a. Issuance of the bonds on April 30, 20X4.
b. Payment of interest on Sept. 30, 20X4.
c. Accrual of interest on December 31, 20X4.
d. Payment of interest on March 31, 20X5.
2. Report interest payable and bonds payable as they would appear on the Alpha balance sheet at December 31, 20X4.