Question: BONDS ISSUED AT FACE VALUE L & L Underwriters issued the following bonds: Date of issue and sale: .....April 1, 20-1 Principal amount: .......$400,000 Sale

BONDS ISSUED AT FACE VALUE L & L Underwriters issued the following bonds:

Date of issue and sale: .....April 1, 20-1

Principal amount: .......$400,000

Sale price of bonds: ......100

Denomination of bonds: ...$1,000

Life of bonds: .......20 years

Stated rate: ........9%, payable semiannually on

.............September 30 and March 31

Prepare journal entries for:

(a) Issuance of the bonds.

(b) Interest payment on the bonds on September 30.

(c) Year-end adjustment on the bonds.

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