P10-7B

Line Item Descriptions Cash Bonds Payable Bond Interest Payable Bond Interest Expense Loss on Bond Retirement P10-7B Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest \begin{tabular}{l|l|l|l|} \hline Richard, Inc., which closes its books on December 31 , is authorized to issue & $600,000 & of & 6% \\ \hline \end{tabular} dated March 1, with interest payments on September 1 and March 1. Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued a. The bond issuance. b. Payment of the semiannual interest on September 1 . c. Accrual of bond interest expense at December 31. d. Payment of the semiannual interest on March 1 of the following year. e. Retirement of $200,000 of the bonds at 104 on March 1, Year 3 (immediately after the Issuance of bonds plus accrued interest. b. Sep. 1 To record semiannual interest payment. c. Dec. 31 To accrue interest expense. d. Mar. 1 To record semiannual interest payment. e. Mar. 1 To record retirement of bonds