Just missing part C and D.

On March 31, 2018, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2018, but the bonds were not issued until April 30, 2018. They were issued at face value.

1. Prepare the journal entry at April 30, 2018, to record the sale of the bonds.

Date Description Debit Credit 50,000+375

April 30, 2018 Cash 50,375

Bonds payable 50,000

Interest payable 375 (50,000*9%*1/12month)

2. Prepare the journal entry at September 30, 2018, to record the semi-annual bond interest payment.

Date Description Debit Credit (50,000*9%*1/12month)

Sep 30, 2018 Interest payable 375 (50,000*9%*5/12month)

Interest expense 1,875

Cash 2,250 375+1,875

3. Prepare the adjusting entry at December 31, 2018, to record bond interest expense accrued since September 30, 2018. (Assume that no monthly adjusting entries to accrue interest expense had been made prior to December 31, 2018.)

4. Explain why the issuing corporation charged its bond investors for interest accrued in April 2018, prior to the issuance date (see part b).