Directions: Prepare journal entries for the bonds from 2008-2012. The company has a fiscal year end of 12/31.

on 11/1/8 toyota issued 500,000 of 10.5% bonds, dates 10/1/8, which are due 10/1/18.Interest is payable annually on 10/1. the market rate for the bonds was 9.75%.

On 9/1/12 toyota retired all of these bonds for 510,000 plus accrued interest.