Recording Bond Issue and Interest Payments
Response to the following problem:
The Kurten Corporation is authorized to issue $500,000 of 8% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, 2010, and are due December 31, 2015.
Required:
Prepare the journal entries to record the following:
April 1, 2010 Sold the bonds at par plus accrued interest
June 30, 2010 First interest payment
Dec. 31, 2010 Second interest payment .