Problem
On January 1, 20X5, Teymond Corporation issued $30,000 in 12-year, zero-coupon bonds. The interest rate is 7% and Teymond uses the effective interest rate method.
Task
I. Record the issuance of the bonds.
II. Record the interest accrual on December 31, 20X5.
III. Record the interest accrual on December 31, 20X6.