Acc291 Financial Accounting: E10-10 On January 1, Neuer Company issued $500,000

Acc291 Financial Accounting

E10-10
On January 1, Neuer Company issued $500,000, 10%, 10-year bonds at par. Interest is payable semiannually on July 1 and January 1.

Instructions:
Prepare journal entries to record the following.
a. The issuance of the bonds.
b. The payment of interest on July 1, assuming that interest was not accrued on June 30.
c. The accrual of interest on December 31.
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