En . eer - 1070 dise BUHOS Sad Long Term Uabilities Issuance of a Bond - On January 1, a corporation issued a $1,000,000, five year, 11% bond that pays interest semi- annually. The market interest rate on January 1 was 10%. The selling price of the bond is $1,038,606. The Journal entry to record issuing the bond is: (2) Assume that $1,000,000 five year bonds paying a contract interest rate of 10% are issued when the market rate of interest is also 10%. The journal entry to record this event would be: (3) On January 1, a corporation issued a $1,000,000, five year, 10% bond that pays interest semi- annually. The market rate on January 1 was 12%. The selling price of the bond is $926,405. The journal entry to record issuing the bond is: The Journal Entry for making an Interest Payment The journal entry to record making an interest payment for a $1,000,000 bond that pays Interest semi- annually. The contract rate is 10%. Redeeming Bonds at Maturity Record the redemption of the $1,000,000 bond at maturity. Redeeming Bonds Before Maturity. Assume Company A has sold its bonds at a premium. At the end of the eighth period. Company A retires these bonds at 104 after paying the semiannual interest. Assume also that the carrying value of the bonds at the redemption date is 102,534. Journalize the entry to record the redemption of the bonds at the end of the eighth period