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:
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May 1.
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Issued the bonds for cash at their face amount.
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Nov. 1.
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Paid the interest on the bonds.
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Dec. 31.
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Recorded accrued interest for two months.
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