Millennial Works, Inc. issued $5,000,000 of 8%, five-year bonds on April 30, 2019. Interest on the...

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Millennial Works, Inc. issued $5,000,000 of 8%, five-year bonds on April 30, 2019. Interest on the bonds is due on October 31

business accounting

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Answer 1

Answer #1

1. When Bonds issued

30.04.2019 Bank Account Dr ------ 50,00,000

To 8% Bonds 50,00,000

2. When Interest Accrued

31.10.2019

Interest Exp A/c Dr ---- 2,00,000

To Interest Accrued A/c - 2,00,000

30.04.2020

Interest Exp A/c Dr ---- 2,00,000

To Interest Accrued A/c - 2,00,000

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Answer 2

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