(Solved): 19. Colson Corporation produces women's clothing. Company officials decide to issue $50,000 in lon ...

19. Colson Corporation produces women's clothing. Company officials decide to issue $\$50,000$ in long-term bonds to finance an expansion of its swimwear line. These bonds are issued for face value on April 1, Year One and pay interest in the amount of 5 percent annually. Interest payments are made semiannually, every April 1 and October 1 . Record the journal entry or the adjusting necessary for each of the following. a. The issuance of the bonds. b. The first payment of interest on October 1 , Year One. c. The accrual of interest on December 31, Year One, so that financial statements can be prepared. d. The payment of interest on April 1, Year Two. 20. Assume the same facts as in problem 19, but instead of April 1, Year One, the bonds are issued on July 1 , Year One. The bonds are issued for face value plus accrued interest. Record the journal entry or adjusting entry necessary for each of the following. a. The issuance of the bonds on July 1, Year One. b. The first payment of interest on October 1, Year One. c. The accrual of interest on December 31, Year One, so that financial statements can be prepared. d. The payment of interest on April 1, Year Two.