Palmer Corporation issued 3,000 7%, 5-year, $1,000 bonds dated January 1, 2012, at face value. Interest is

Question:

Palmer issued 3,000 7%, 5-year, $1,000 bonds dated January 1, 2012, at face value. Interest is paid each January 1.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2012.
(b) Prepare the adjusting journal entry on December 31, 2012, to record interest expense.
(c) Prepare the journal entry on January 1, 2013, to record interest paid.

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...