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Entries for issuing bonds
Austin Co. produces and distributes semiconductors for use by computer manufacturers. Austin Co. issued $15,000,000 of 12-year, 12% bonds on May 1 of the current year, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year:
May 1.
Issued the bonds for cash at their face amount.
Nov. 1.
Paid the interest on the bonds.
Dec. 31.
Recorded accrued interest for two months.
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