Q1) ABC Corporate Type: 10-year bonds Date of Issue: March 1, 2006. Total Bond Stated Value at issuance: $500,000,000 Stated Bonds Annual Interest Rate: 10% Market Annual Interest Rate: 8% Interest payments: Every 6 months Year-end for ABC Corporate: Dec 31
Question: Illustrate journal entries in 2006. (Reminded year-end for ABC Corporate is Dec 31, adjusting is required)