On May 1, Mason Company issued $3,500,000, 6% bonds for face value plus including accrued interest....
On May 1, Mason Company issued $3,500,000, 6% bonds for face value plus including accrued interest. Interest is payable semiannually on January 1 and July 1.
Prepare the journal entries to record the May 1 bond issue and the July 1 interest payment
Homework Answers
| Date | Account Titles | Debit | Credit |
| 1-May | Cash | $ 3,570,000 | |
| Bonds Payable | $ 3,500,000 | ||
| Interest Payable | $ 70,000 | ||
| 1-Jul | Interest Expense | $ 35,000 | |
| Interest Payable | $ 70,000 | ||
| Cash | $ 105,000 |
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