ABCD Co. issued $500,000, 12%, 10 year bonds on January 1, 2013 at 97. Interest on these bonds is
payable annually on January 1. ABCD Co. uses the straight-line method to amortize
bond discount or premium.
Instructions: Prepare journal entries for :
	(a)		The issuance of the bonds on January 1.
	(b )		The accrual of interest on December 31 and the amortization of bond discount.
	(c )		The payment of interest on January 1, 2014.
	(d )	The retirement of the bonds at maturity.
				GENERAL JOURNAL
DATE						LP		Debit		Credit