Question: Derp Corp issued 15 year bonds payable with a face amount of 70,000 when the market interest rate was 6.5%. The bonds were issued at

Derp Corp issued 15 year bonds payable with a face amount of 70,000 when the market interest rate was 6.5%. The bonds were issued at par. Assume that the accounting year of Derp ends on Dec 31. Journalize the following transactions for Derp.

a. Issuance of the bonds payable at par on July 1, 20x0.

b. Accrual of interest expense on Dec 31, 20x0.

c. Payment of cash interest on January 1, 20x1.

d. Payment of the bonds payable at maturity

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