Olstad Company issued $506,900 of 7%, 10-year bonds on January 1, 2012, at face value. Interest is payable annually on January 1.
(a) Prepare the journal entries to record the issuance of the bonds.
(b) Prepare the journal entries to record the accrual of interest on December 31, 2012
(c) Prepare the journal entries to record the payment of interest on January 1, 2013
(d) Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.