14-1 On 1/1/2017 Boston Enterprises issues semiannual interest bonds. The bonds have a $3,000,000 par value, mature in 20 years, and pay 8% interest annually. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to bondholders every six months? 2. Prepare journal entries to record : (a) the issuance of bonds on January 1, 2017; (b) the first interest payment on June 30, 2017; and (c) the second interest payment on December 31, 2017. 3. Prepare journal entry for issuance assuming the bonds are issued at (a) 95 and (b) 105. 14-2 On 1//1/2017 Tano Issues semiannual interest, three year, bonds with a par value of $200,000. The bonds have a contract rate of 8% and the market rate at the date of issuance is 10%. The bonds are sold for $191,000. 1. What is the amount of the discount on the bonds at issuance? 2. How much bond interest expense will be recognized over the life of the bonds? 3. Prepare an amortization table like the one in Exhibit 14-7 for these bonds; use the straight line method to amortize the discount. 14-3 Bringham Company issues 10 year, annual interest 6%, semiannual interest paying, par value $700,000 bonds. On the issue date, the annual market rate for the bonds is 8%. 1. What is the amount of each semiannual interest payment on these bonds? 2. How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to determine whether the bonds are issued at par, at a discount, or at a premium. 4.Compute the price of the bonds as of their issue date. 5. Prepare the journal entry to record the bonds' issuance