Need help interpreting this information to put into my journal. Thanks On May 1,

Question

Need help interpreting this information to put into my journal. Thanks

On May 1, 2012, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2012, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31. Prepare the journal entry to record the issuance of the bonds. Prepare the adjusting entry to record the accrual of interest on December 31, 2012. Show the balance sheet presentation on December 31, 2012. Current liabilities $ Long-term liabilities $

Explanation / Answer

current liabilites on dec 2012 Dec. 31, 2012 Dr. Interest Expense $36,000 Cr. Interest Payable-Bond $36,000 To record 8 months of interest

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