Entries for Issuing Bonds

Abioye Co. produces and distributes semiconductors for use by computer manufacturers. Abioye Co. issued $420,000 of 10-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.

May 1	Issued the bonds for cash at their face amount.
Nov. 1	Paid the interest on the bonds.
Dec. 31	Recorded accrued interest for two months.

Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. Round your answers to whole number.

May 1	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash
	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable	Bonds Payable	Bonds Payable
Nov. 1	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayableCash	Cash	Cash
Dec. 31	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Expense	Interest Expense	Interest Expense
	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Payable	Interest Payable	Interest Payable