Crowder Company has the following bond issue: Date of issue and sale: April 1, 20X1 Principal amount: $3,000,000 Denomination of each bond: $1,500 Life of bonds: 10 years Stated rate: 6%, payable semiannually each April 1 and October 1 Required: Record the following journal entries. Assume that on April 1, the stated rate is the same as the current market rate. 1. The sale and issuance of the bonds at face value on April 1. 2. The first semiannual interest payment on October 1. 3. The adjusting entry for the accrued interest from October 1 through December 31. 4. Assume that 75 of the bonds are redeemed on April 1 (4 years after issuance) for 105.
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