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XYZ Co. produces and distributes TV cable for use by telecommunication companies. XYZ Co. issued 10,000,000 of 10 years, 4% bonds on March 1 at
XYZ Co. produces and distributes TV cable for use by telecommunication companies. XYZ Co. issued 10,000,000 of 10 years, 4% bonds on March 1 at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calender year. Illustrate the effects on the accounts and financial statements of recording the following seleced transaction for the current year:
Mar. 1 Issued the bonds for cash at their face amount
Sept. 1 Paid the interest on the bonds.
Dec. 31 Recorded accruede interest for four months.
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