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The Indigo Company issued 500,$1,000,8%,10-year bonds on January 1, 2022 , at 96. Interest is...

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Accounting

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The Indigo Company issued 500,$1,000,8%,10-year bonds on January 1, 2022 , at 96. Interest is payable annually on January 1. Indigo uses straight-line amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following events: (a) The issuance of the bonds. (b) The accrual of the interest and the discount or premium amortization on 12/31/22. (c) The payment of the interest on 1/1/23. (d) The redemption of the bonds at maturity, assuming interest for the last period has been paid and recorded

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