On March 1, 2015, Farmer Co. issued at a price of 100 $20 million of 8%, 25-year bonds payable. Interest is payable semiannually each March 1 and September 1.
REQUIRED:
Identify the accounting equation effects at December 31, 2015, regarding this bond issue.
Dec. 31 20,000,000 × 8% × 4/12 = $533,333
Bond interest expense and Bond interest Payable

Question

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The Answer of On March 1, 2015, Farmer Co. issued at a price of 100 $20 million of 8%, 25-year bonds payable. Interest is payable semiannually each March 1 and September 1.
REQUIRED:
Identify the accounting equation effects at December 31, 2015, regarding this bond issue.
Dec. 31 20,000,000 × 8% × 4/12 = $533,333
Bond interest expense and Bond interest Payable