Need help filling out my ledger, and please explain the processes. I\'m very los

Question

Need help filling out my ledger, and please explain the processes. I'm very lost. Thanks

Jaurez Company issued $400,000 of 9%, 10-year bonds on January 1, 2012, at face value. Interest is payable semiannually on July 1 and January 1. Instructions Prepare the journal entries to record the following events. The issuance of the bonds. The payment of interest on July 1, assuming no previous accrual of interest. The accrual of interest on December 31. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Explanation / Answer

The issuance of the bonds.
2010
Jan. 1
Dr Cash $400,000
Cr Bonds payable $400,000

The payment of interest on July 1, assuming no previous accrual of interest.
2010
July 1
Dr Interest expense $18,000
Cr Cash $18,000

The accrual of interest on December 31.
2010
Dec. 31
Dr Interest expense $18,000
Cr Interest payable $18,000

The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.
2020
Jan. 1
Dr Bonds payable $400,000
Cr Cash $400,000

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