BusinessCourse My Subscriptions Return to course Amy Sh Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Ashton, Inc., which closes its books on December 31, is authorized to issue $800,000 of nine percent, 20- year bonds dated May 1, with interest payments on November 1 and May 1 Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on October 1: a. The bond issuance. b. Payment of the first semiannual period's interest on November 1 c. Accrual of bond interest expense at December 31 d. Payment of the semiannual interest on May 1 of the following year. e. Retirement of $400,000 of the bonds at 101 on May 1, Year 2 (immediately after the interest payment on that date). Round to the nearest dollar. Use 360 days for calculations. General Journal Date Description Debit Credit a. Oct.1 Cash 0 x S Bonds Payable 0 Bond Interest Payable Issuance of bonds at 100 plus five months accrued interest 0 0 x b Bond Interest Pavable Nov.1 CEntamie > x x BusinessCouse Return to course General Journal Date Description Debit Credit . Cash Oct.1 0 v Bonds Payable 0 v 0 x Bond Interest Payable 0 x 0v Issuance of bonds at 100 plus five months' accrued interest b. Bond Interest Payable Nov.1 0 x 0 v Bond Interest Expense 0 x 0v Cash 0 v 0 x To record semiannual interest payment C. Dec.31 Bond Interest Expense 0 x 0 v Bond Interest Payable 0v 0 x To accrue interest expense. d. May 1 Bond Interest Payable 0 x 0V Bond Interest Expense 0 x 0v Cash 0 x To record semiannual interest payment e. May 1 Bonds Payable 0 x 0v Loss on Bond Retirement 0 x 0 v Cash 0 0 x To record retirement of bonds