On September 1, 2011, Mooney Corporation issued $400,000 of 10-year, 5% bonds at 100. Interest is payable

Question:

On September 1, 2011, Mooney issued $400,000 of 10-year, 5% bonds at 100. Interest is payable semi-annually on September 1 and March 1. Mooney's year end is December 31.
Instructions
(a) Prepare journal entries to record the following:
1. The issue of the bonds on September 1, 2011
2. The accrual of interest on December 31, 2011
3. The payment of interest on March 1, 2012
(b) Identify what amounts, if any, would be reported as a current liability and non-current liability with respect to the bond and bond interest accounts on December 31, 2011.
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...