Memorex Corporation issues 20-year, 8-percent bonds payable with a face value of ($ 5,000,000) on March 31.

Question:

Memorex Corporation issues 20-year, 8-percent bonds payable with a face value of $\$ 5,000,000$ on March 31. The bonds sell at $1011 / 2$ and pay interest on March 31 and September 30. Assume that Memorex amortizes bond premium by the straight-line method. Record

(a) issuance of the bonds on March 31,

(b) payment of interest on September 30, and

(c) accrual of interest on December 31 .

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