BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November...
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Accounting
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU curriculum corporation closes its books annually on December 31.
A.) Prepare the journal entries for the following:
1. Nov. 1 2018 bond issue
2. Adjusting entry for December 31, 2018 (adjusting entry should cover 2 months)
3. May 1, 2019 entry
4. Nov. 1 2019 entry
5. adjusting entry from December 31, 2019
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