ABC Company issued $5 million, 10-years bonds with 6% interest rate (annually). Bonds were issued on...

 

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ABC Company issued $5 million, 10-years bonds with 6% interest rate (annually). Bonds were issued on September 1, 2021 at face value plus 3 months' accrued interest, as the authorization of bond has been obtained by the company on June 1, 2021. The contractual Interest paying dates are September 1 and December 1 each year. Prepare the necessary adjusting entries (with description) in general journal form on: a. September 1 2021, to record the issuance of bond. b. December 1 2021, to record the semiannual interest payment on the bond issue. c. December 31, 2021 to record interest expense accrued through, year end. d. June 1, 2022 to record second semiannual interest payment. ABC Company issued $5 million, 10-years bonds with 6% interest rate (annually). Bonds were issued on September 1, 2021 at face value plus 3 months' accrued interest, as the authorization of bond has been obtained by the company on June 1, 2021. The contractual Interest paying dates are September 1 and December 1 each year. Prepare the necessary adjusting entries (with description) in general journal form on: a. September 1 2021, to record the issuance of bond. b. December 1 2021, to record the semiannual interest payment on the bond issue. c. December 31, 2021 to record interest expense accrued through, year end. d. June 1, 2022 to record second semiannual interest payment.

Answer rating: 100% (QA)

a Date Sep 1 Cash 2021 General Journal Bonds payable Int... View the full answer