Discuss the below:
BONDS ISSUED AT FACE VALUE R & R Collectibles issued the following bonds:
Date of issue and sale: .....................April 1, 20-1
Principal amount: ...........................$500,000
Sale price of bonds: ........................100
Denomination of bonds: ...................$1,000
Life of bonds: ...............................10 years
Stated rate: ...................................8%, payable semiannually on
.................................................September 30 and March 31
Q: Prepare journal entries for:
(a) Issuance of the bonds.
(b) Interest payment on the bonds on September 30.
(c) Year-end adjustment on the bonds.