Devers Corporation issued 400,000 of 6% bonds on May 1, 2015. The bonds were dated January 1,

Question:

Devers Corporation issued £400,000 of 6% bonds on May 1, 2015. The bonds were dated January 1, 2015, and mature January 1, 2017, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Devers’ journal entries for

(a) the May 1 issuance,

(b) the July 1 interest payment, and

(c) the December 31 adjusting entry.

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