10-7A. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Ashton, Inc., which closes its books on December 31, is authorized to issue $800,000 of nine percent, 20-year bonds dated May 1, with interest payments on November 1 and May 1 LO2 Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on October 1: The bond issuance. a. Payment of the first semiannual period's interest on November 1 Accrual of bond interest expense at December 31 Payment of the semiannual interest on Retirement of $400,000 of the bonds at 101 on b. . May 1 of the following year d. May 1, Year 2 (immediately after the interest . payment on that date). mod Rotio The following data are from the D E a Year 1 1-Oct 1-Nov C 31-Dec d Year 2 1-May 1-May