Chapter 8
Non-Current Liabilities
392
AP-5A (
3
)
On April 30, 2016, a company issued $600,000 worth of 4% bonds at par. The term of the
bonds is 10 years, with interest payable semi-annually on October 31 and April 30. The year-
end of the company is November 30. Record the journal entries related to interest for 2016
and 2017. Note that interest must be accrued at the end of each year.
Date
Account Title and Explanation
Debit
Credit
