The board of directors of ALL Services Inc. authorized the issuance of $500,000 face value, 20-year, 5 percent bonds dated April 1, 2022, and maturing on April 1, 2042. Interest is payable semiannually on April 1 and October 1. ALL uses the calendar year as its fiscal year. The bond transactions that occurred in 2022 and 2023 follow.

INSTRUCTIONS
Record the transactions in general journal form. Use the account names given in the chapter. Round to the nearest dollar.

Analyze: Based on the transactions given, what is the balance in the Bonds Payable account on December 31, 2022?

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DATE TRANSACTIONS FOR 2022 1 Issued $300,000 of bonds at face value. Apr. Oct. 1 Dec. 31 31 Paid the semiannual interest on the bonds issued. Recorded the adjusting entry for the accrued bond interest. Closed the Bond Interest Expense account to the Income Summary account.