On January 1, Porter Corporation issued $800,000, 6%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.
Instructions
Prepare journal entries to record the
(a) Issuance of the bonds.
(b) Payment of interest on July 1, assuming no previous accrual of interest.
(c) Accrual of interest on December 31.

Question

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The Answer of On January 1, Porter Corporation issued $800,000, 6%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.
Instructions
Prepare journal entries to record the
(a) Issuance of the bonds.
(b) Payment of interest on July 1, assuming no previous accrual of interest.
(c) Accrual of interest on December 31.

On January 1, Porter Corporation Issued $800,000, 6%, 5-Year Bonds