Entries for Issuing Bonds Austin Co. produces and distributes semiconductors for use by computer manufacturers. Austin Co. issued $15,000,000 of 12-year, 12% bonds on May 1 of the current year, 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 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.

May 1

Cash 15,000,000

Bonds Payable 15,000,000

Nov. 1

Interest expense 900,000

Cash 900,000

Dec. 31

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