Hastings, Corp. issued 6%, five-year bonds payable with a maturity value of $5,000 at par on May

Question:

Hastings, Corp. issued 6%, five-year bonds payable with a maturity value of $5,000 at par on May 1, 2014. Assume that the fiscal year ends on December 31. Journalize the following transactions and include an explanation for each entry.

a. Issuance of the bonds payable on May 1, 2014.

b. Payment of the first semiannual interest amount on November 1, 2014.

c. Accrual of semiannual interest expense on December 31, 2014.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...