Basting Corp. issued at par 12 âpercent, five-year bonds payable with a maturity value of $ 40,000 on May 1â, 2018. Assume the fiscal year ends December 31. Journalize the following transactions and include an explanation for each entry. Round calculations to the nearest dollar.
a. Issuance of the bonds payable on May 1â, 2018
b. Payment of the first semiannual interest amount on November 1â, 2018
c. Accrual of interest expense on December 31â, 2018