018, Gardner Corporation received authorization to issue $60,000 of 9 percent, 3

Question

018, Gardner Corporation received authorization to issue $60,000 of 9 percent, 30-year bonds p erest on March 31 and September 30. The entire issue was dated March 31, 2018, but the bonds w 2018. They were issued at face value. ntries issue of bonds and related interest expense. (If no entry is required for a transaction/event, required" in the first account field.) ction list X: rd the sale of bonds. rd the semiannual bond interest payment. ord the adjusting entry to recognize three months' rest. Credit

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit Cash $                  60,000 Mar 31, 2018          To 9% Bonds $                     60,000 (To Record the issuance of Bonds) Interest Expenses($ 60,000 X 9% X6/12) $                     2,700 Sept - 30 2018           To Cash $                       2,700 (To Record the payment of interest of Sept month) Interest Expenses ($ 60,000 X 9% X3/12) $                     1,350 Dec 31, 2018        To Interest Payable $                       1,350 (To Record the interest Expenses for the year end)

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