Problem $1$ Issue Bonds at Par

A B Corp issues $$1,000,000$ of $6\%,20-Yr$ bonds. Interest payment dates were Jan. $1$ and July $1.$

Market rate $=6\%.$ Prepare journal entries for the issuer.

Use the effective interest method.

a$.$ Sale on Jan. $1$ for $100$

b$.$ July $1$ entry.

c$.$ Jan $1$ entry.

d$.$ July $1$ entry.

B Adjustment for fiscal year ending on Sept. $1(2$ Months only$)$