Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies. Cyber Tech Inc. issued $50,000,000 of 20-year, 6% bonds on March 1 at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Illustrate the effects on the accounts and financial statements of recording the following selected transactions for the current year: Mar. 1. Issued the bonds for cash at their face amount. Sept. 1. Paid the interest on the bonds. Dec. 31. Recorded accrued interest for four months.
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