On Jan 1, Joplin City issued 10% serial bonds at par to finance streetlights in an area recently incorporated in the city limits. The face amount of the bonds is $1,200,000; interest and principal is payable annually on January 1, and bonds are to be retired in equal amounts over 6 years from collections from assessments against property affected.
REQUIRED:
a. Record the journal entry at year end to recognize the matured portion of the bond and to recognize interest due
b. On Jan 1, year two, record the journal entry to pay the first year's installment plus interest on the bond.