Q1) On March 31, 2008, Glenn Poll Club, Inc., got authorization to issue $50,000 of 9%, 30-year bonds. Bonds pay interest on March 31 and September 30. Entire issue was dated March 31, 2002, but bonds were not issued until May 31, 2008. They were issued at par.
Make journal entry at May 31, 2008, to record sale of bonds.
Make journal entry at September 30, 2008, to record semi-annual bond interest payment.
Make adjusting entry at December 31, 2008, to record bond interest expense accrued since September 30, 2008. (Suppose that no monthly adjusting entries to accumulate interest expense had been made previous to December 31, 2008).