1)On January 1, the first day of the fiscal year, a company issues a $950,000, 10%, 10-year bond that pays semiannual interest of $47,500 ($950,000 10% year), receiving cash of $950,000.

(a) Journalize the entry to record the issuance of the bonds.

(b) Journalize the entry to record the first interest payment on June 30.

(c) Journalize the entry to record the payment of the principal on the maturity date.

2)On the first day of the fiscal year, a company issues $58,000, 10%, six-year installment notes that have annual payments of $13,317. The first note payment consists of $5,800 of interest and $7,517 of principal repayment.

a. Journalize the entry to record the issuance of the installment notes.

b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank.