The Grill, Inc., issued $300,000 of 10-year, 6 percent bonds on July 1, 2013, at 102. Interest is payable in cash semiannually on June 30 and December 31.
a. Prepare the journal entries to record issuing the bonds and any necessary journal entries for 2013 and 2014. Post the journal entries to T-accounts.
b. Prepare the liabilities section of the balance sheet at the end of 2013 and 2014.
c. What amount of interest expense will Pet report on the financial statements for 2013 and 2014?
d. What amount of cash will Pet pay for interest in 2013 and 2014?