Bond interest (Bond issued at face value) ABC company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2015, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1. The bonds were issued on August 1, 2015, at 100 plus three months accrued interest. Prepare the following entries:

a) issuance entry

b) first interest payment

c) Adjusting entry for accrued interest

d) Next interest payment