Rockwell Corporation issued $2 million of 5-year, 3% bonds dated January 1, 2021, at 100. Interest is

Question:

Rockwell Corporation issued $2 million of 5-year, 3% bonds dated January 1, 2021, at 100. Interest is payable annually on January 1 and July 1. Rockwell has a December 31 year end.

a. Prepare the journal entry to record the sale of these bonds on January 1, 2021.

b. Prepare the journal entry to record the fi rst interest payment on July 1, 2021.

c. Prepare the adjusting journal entry on December 31, 2021, to accrue the interest expense.

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...

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