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On July 1, 2018, Spear Co. issued 2,000 of its 10%, $1,000 bonds at 103...

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Accounting

  1. On July 1, 2018, Spear Co. issued 2,000 of its 10%, $1,000 bonds at 103 plus accrued interest. The bonds are dated April 1, 2018 and mature on April 1, 2028. Interest is payable semiannually on April 1 and October 1.
    1. What amount of cash did Spear receive from the bond issuance?
    2. What is the amount of accrued interest and how is this treated in the entry?

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