1.

Medhurst Corporation issued $89,000 in bonds for $86,300. The bonds had a stated rate of 8% and pay interest quarterly.

What is the journal entry to record the first interest payment? If an amount box does not require an entry, leave it blank.

Interest Expense: ............? .................?

Cash: ..................? ...................?

2.

Medhurst Corporation issued $86,700 in bonds for $84,000. The bonds had a stated rate of 6% and pay interest quarterly.

What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.

Cash:............? ...............?

Discount on Bonds Payable:..................? ...................?

Bonds Payable: .......................? ......................?