On January 1, 2005, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. Exercise I 0- I 1. How much interest will Kidman pay (in cash) to the bondholders every six months? -—7b SC)(j'^ecordin8 bond issuance and 2. Prepare journal entries to record

(a) the issuance of bonds on January 1, 2005;

(b) the first inter¬

est payment on June 30, 2005; and (c) the second interest payment on December 31, 2005.

3. Prepare the journal entry for issuance assuming the bonds are issued at

(a) 98 and (b) 102.