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)      

 

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