On May 1, 2021, Kirmer Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and July 1, for $1,406,500 plus accrued interest. The bonds mature on January 1, 2027. Amortization is recorded when interest is received by the straight-line method (by months and round to the nearest dollar). (Assume bonds are available for sale.)
A- Prepare the entry for May 1, 2021.
B- The bonds are sold on August 1, 2022 for $1,412,500 plus accrued interest. Prepare all entries required to properly record the sale.
