The board of directors of ACR Corporation authorized the issuance of $1,000,000 face value, 6 percent bonds. The bonds mature 10 years from their issue date of March 1, 2019. The interest is payable semiannually on March 1 and September 1. Because the funds were not immediately needed, no bonds were issued until July 1, 2019. Round to the nearest dollar.

INSTRUCTIONS
1. Record the following transactions in general journal form. Use the account names given in the chapter.
2. Prepare the Long-Term Liabilities section of the corporation€™s balance sheet on December 31, 2019.

Analyze: What is the balance of the Bond Interest Expense account at December 31, 2019, prior to closing?

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DATE TRANSACTIONS FOR 2019 July Issued $500,000 of bonds at 97.68 plus accrued interest from March 1. (When bonds are issued between interest payment dates, the accrued interest is paid to the corporation by the purchaser. Credit Bond Interest Expense.) Sept. Paid the semiannual bond interest. Amortized the discount on the bonds issued. Dec. 31 Recorded the adjusting entry to accrue the interest on the bonds issued and to amortize the discount for four months. (Make one entry.) 31 Closed the Bond Interest Expense account. DATE TRANSACTIONS FOR 2020 Jan. Reversed the adjusting entry of December 31, 2019. Mar. Paid the semiannual bond interest and amortized the discount on the bonds issued.