Does any one know whether an adjusting entry is required for this issuance of bonds?

Question

the bonds were issued on sept 1 and payments will be made semiannually on march 31 and sept 30. now the company's accounting cycle ends on 12/31. this means that adjusting entry time comes before the payment date. so what shall i record here?
is it only the issued bonds of sept 1 ?
or the payment i am gonna make on march 31?

Answer 1

Not really enough information. Assume the bonds were sold at a premium, under straitght line amortization.

Amortize the premium over the number of interest payments

Sept 1 Credit "interest expense" (total bond interest over six months, minus amortized premium for six months) = result

Credit Premium on bonds payable (monthly amortized premium x six months) = result

Debity cash = result should equal coupon rate times value at maturity/2

12/31 credit interest expense (interest on bond over two months minus amortized premium over two months) = result

Credit Premium on bonds payable (monthly amortization x 4) = result

Debit interest payable

3/1Credit interest expense for two months (2 months interest minus 2 months amortized premium)= result
Credit interest payable for four months (coupon rate times value at maturity/3)=result
Credit premium on bonds payable (2 months amortization)=result

Debit cash

Answer 2

Bonds Issued at a proper value Carlisle Corp. Issued the subsequent bonds at a proper value: Date of dilemma and sale: April a million, 20-a million important volume: $570,000 Sale value of bonds: 104 Denomination of bonds: $a million,000 existence of bonds: twenty years recognized fee: 10%, payable semiannually on September 30 and March 31 prepare magazine entries for:

Answer 3

You should have an Ammortization schedule which tells you when the ammortization take place like March 31 and Sept 30. On these dates you make the Adjusting entries like,
Credit LT or ST Liabilities bond value
less Ammortization on March 31
-----------------------------------------------
LT or ST liability as of March 31
On Sept 30
Less Ammortization of Sept 30
---------------------------------------------
LT or ST Liability as of Sept 30
This will the bond entry on Dec 31
Debit is Cash which I need not bother in your question I think.
On each day of Ammortization you credit cash too and debit Long term or Short term liability.