Review of bonds for the exam

j/e for issuance - we get cash and owe money thus


dr cash $$$$$$$$
cr Bonds payable $$$$$$$$$
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for bonds, interest is paid every six months.
for interest payments between july 1 and 12/31:

dr interest exp $$$$$$
cr cash $$$$$$$$$
the amount is the face of the bond * the anual interest rate *6/12 (because you are paying for half a year)
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at 12/31 we owe interest that we have not yet paid. for our f/s to be correct we must record how much we owe

dr interest exp $$$$$$$$$
cr interest payable $$$$$$$$$$$$

the amount is the face*annual interest rate*the months since the last payment/12
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for interest payments 1/1-6/30

dr interest exp $$$$$$
dr interest payable EEEEE
cr cash hhhhhh

EEEEE= the amount per the 12/31 accural - see above, $$$$$$$$$ = the amount is the face*annual interest rate*the months since 12/31 /12, hhhhhh = the amount is the face of the bond * the anual interest rate *6/12 (because you are paying for half a year)(on 12/31 we made an entry on our books but paid nothing)