Declension Company sold bonds that had a face (maturity) value of $1,000,000 on May 1,...
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Declension Company sold bonds that had a face (maturity) value of $1,000,000 on May 1, 2019 for $900,000. The bonds had a 10-year term with a maturity date of April 30, 2029. The annual interest rate on the bonds is 12 percent which is paid semiannually each October 31 and April 30. What entries should Declension Company make on a. issuance of the bond on May 1,, 2019, b. on payment of interest on October 31, 2019 and c. on the accrual of interest at the fiscal year end December 31, 2019?
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