The owner of Delta Health Spa approves the issuance of $600,000 of 5%, 10-year bonds payable. The semi-annual interest dates are May 31 and November 30. The bonds are issued on July 31, 2012, at par plus accrued interest.
Requirements:
1) Journalize the given transactions (Round your answers to the closest whole dollar):
a) Issuance of the bonds on July 31, 2012
b) Payment of interest on November 30, 2012
c) Accrual of interest on December 31, 2012
d) Payment of interest on May 31, 2013
2) Report interest payable and bonds payable as they would appear on the Delta balance sheet at December 31, 2012