On January 1,2018,IBM Sells $2 Million of 8% Bonds at Face

Essay

On January 1,2018,IBM sells $2 million of 8% bonds at face value with interest to be paid at the end of each year.Prepare the journal entries and show any changes to assets,liabilities,and shareholders' equity on the following dates:
a.January 1,2018 (the initial bond sale).
b.March 31,2018 (the end of the first quarter).
c.December 31,2018 (the payment of interest at the end of the year; assume that the interest owed for each of the four quarters has been properly accrued).