Problem:
On September 1 2007, Chardin Corporation issued $300,000, 8%, 10 year bonds at face value. Interest is payable annually on Sept. 1. Chardin year end is December 31.
Prepare journal entries to record the following events.
a) The issuance of the bonds
b) The accrual of interest on December 31, 2007
c) The payment of interest on September 1, 2008