Question: Problem 1 Issue Bonds at Par A B Corp issues $ 1 , 0 0 0 , 0 0 0 of 6 % , 2

Problem 1 Issue Bonds at Par
A B Corp issues $1,000,000 of 6%,20-Yr bonds. Interest payment dates were Jan. 1 and July 1.
Market rate =6%. Prepare journal entries for the issuer.
Use the effective interest method.
a. Sale on Jan. 1 for 100
b. July 1 entry.
c. Jan 1 entry.
d. July 1 entry.
B Adjustment for fiscal year ending on Sept. 1(2 Months only)
Problem 1 Issue Bonds at Par A B Corp issues $1,000,000

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