Accounting for Bonds
Response to the following problem:
Lihue Enterprises issued $1.5 million, 9%, 20-year bonds on November 1, 2008. Interest payment dates are May 1 and November 1. The bonds were sold at face value
Required:
1. Provide the journal entry to record the initial issuance of the bonds.
2. Provide the required journal entry on December 31, 2008.
3. Provide all journal entries relating to the bonds made during 2009.