Answer
Step1:
2010
Sept. 01 Cash 600,000 dollars
Bonds Payable 600,000 dollars
Step2:
Dec. 31
Bond Interest Expense 16,000 dollars
Bonds Interest Payable 16,000 dollars
Step3:
2011
Sept. 01 Bonds Interest payable 16,000 dollars
Bonds interest expense 32,000 dollars
Cash 48,000 dollars
Work Step by Step
Step1:
To record sale of bonds at face value
Step2:
To accrue bond interest for the period September-December 2010
Step3:
To record payment of bond interest for the year ended September 2011
