On August 1, 2017, Indigo Corporation issued $504,000, 8%,10-year bonds at face value. Interest is payable annually on August1. Indigo’s year-end is December 31.
Prepare a tabular summary to record the following events.
| (a) | | The issuance of the bonds. |
| (b) | | The accrual of interest on December 31, 2017. |
| (c) | | The payment of interest on August 1, 2018. |
| Cash | = | Bonds Pay. | + | Interest Pay. | + | Common Stock | + | Revenue | - | Expense | - | Dividend |
|---|
Aug 1 2017 504000(cash) 504000(bonds)
Dec 31 2017 ??????? Need help with this part
Aug 1 2018 -40320 (cash) ???? interest pay and expense ??????help
Dec 31 2017
Aug 1 2018
