Exhibit 14-3 Jones Corporation issued $400,000 of its 8%, 10-year bonds, dated January 1, 2013, at face value plus accrued interest on May 1, 2013. Interest is paid on January 1 and July 1. Jones uses the most common method to record the sale of the bonds between interest payment periods.
-Refer to Exhibit 14-3. The entry to record the sale would include a

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The bonds were issued at face value plus accrued interest. The accrued interest from January 1 to May 1 is $10,667 ($400,000 * 8% * 4/12). This amount is credited to Interest Expense, as it represents interest that has accrued but not yet been paid.

Exhibit 14-3 Jones Corporation Issued $400,000 of Its 8%, 10-Year