Problem:
On April 1, 2003, Tatum Corporation issued $900,000 of 4-year, 8% bonds at face value plus accrued interest. The bonds were dated February 1, 2003, and pay interest semiannually on August 1 and February 1.
Instructions:
Prepare all entries relating to the bond issue from the date of sale through the year end on December 31, 2003, including any adjusting entries. You may omit journal entry explanations but you should show all computations.