Keystone Corporation issued $1 million of five-year, 5% bonds dated March 1, 2011, at 100. Interest is

Question:

Keystone issued $1 million of five-year, 5% bonds dated March 1, 2011, at 100. Interest is payable semi-annually on September 1 and March 1. Keystone has a December 31 year end.
(a) Record the issue of these bonds on March 1, 2011.
(b) Record the first interest payment on September 1, 2011.
(c) Record the adjusting journal entry on December 31, 2011, to accrue the interest.
(d) Prepare the journal entry to record the second interest payment on March 1, 2012.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...