On April 1 2016 Alpha Company issued 100000 of 12 10year bon

On April 1, 2016, Alpha Company issued $100,000 of 12%, 10-year bonds. The bonds were issued at par plus accrued interest and are dated January 1, 2016. Interest is paid on July 1 and January 1. Use this information to prepare the General Journal entry (without explanation) for the April 1, 2016 issue of the bonds. If no entry is required then write \"No Entry Required.\"

Solution

Date Account titles and explanation Debit Credit April 1, 2016 Cash $103,000 Bonds Payable $100,000 Interest Payable $3,000