On May 1, 2005, Kidman Enterprises issues bonds dated January 1, 2005, that have a $1,700,000 par Recording bond issuance with value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds accrued interest are sold at par plus four months’ accrued interest.

PI I. How much accrued interest do the bond purchasers pay Kidman on May 1, 2005?

2. Prepare journal entries to record

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

(b) the first interest Check (I) $51,000 payment on June 30, 2005; and

(c) the second interest payment on December 31, 2005.