Gonzalez, Inc. has a fiscal year-end of September 30 . On March 1, 2018, Gonzalez authorized $800,000 of bonds payable, with a term of 12 years. The bonds carry a stated interest rate of 6%, with interest to be paid semi- annually on February 28 th st and August 31 . On August 1, 2019, Gonzalez issued three-quarters of the bonds for cash, at a premium of $25,400. Prepare the journal entries that would be required relating to the bonds over the period March 1, 2018 through September 30, 2019.

Matters to consider: The amortization period for the premium will be for the period between the issuance date of the bonds and their maturity date. Amortization of the premium will be calculated using the straight-line method. the Gonzalezs fiscal year ends on September 30 . An adjusting journal entry must be made for accrued interest at this fiscal year-end.

I'm having trouble understanding the terminology. When he says authorization of bonds I know there is no journal entry, but when we issue the bonds, would I start computing the amount of interest payable from the March 1st, 2018 date? Please be thorough when explaining, this question really confused me. Thank you!