Island Cove Corporation had the following bond issue:

Date of issue/sale:	May 1, 20-A
Principal:	$500,000
Sale price of bonds:	104
Life of bonds:	10 years
Stated rate:	6% a year payable semiannually on October 31 and April 30

Required:

Prepare the following general journal entries.

a. The issuance of the bonds on May 1, 20-A.

b. The first interest payment for 20-A.

c. The adjusting entry for December 31, 20-A.

d. The reversing entry for January 1, 20-B.

If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	a. May 1					1
2						2
3						3
4						4
5	b. Oct. 31					5
6						6
7						7
8						8
9	c. Dec. 31					9
10						10
11						11
12						12
13	d. Jan. 1					13
14						14
15						15