Bonds Payable Issued Between
Interest Dates
Illustrative Entries
| 6-1-X1 |
Cash |
102,000 |
||
| Interest Payable |
2,000 |
|||
| Bonds Payable |
100,000 |
|||
|
To
record issuance of 100, 12% bonds |
||||
| 9-30-X1 |
Interest Expense |
4,000 |
||
| Interest Payable |
2,000 |
|||
| Cash |
6,000 |
|||
| To record interest payment (includes return of accrued interest payable from original issue on June 1) |