Exercise $10-3($Algo$)$ Recording bond issuance and interest LO P$1$

On January $1,$ Boston Enterprises issues bonds that have a $$1,400,000$ par value, mature in $20$ years, and pay $10\%$ interest semiannually on June $30$ and December $31.$ The bonds are sold at par.

$16\mathrm{.}66$

points

$01$:$14$:$26$

How much interest will Boston pay $($in cash$)$ to the bondholders every six months?

Prepare journal entries to record $($a$)$ the issuance of bonds on January $1,($b$)$ the first interest payment on June $30,$ and $($c$)$ the second interest payment on December $31.$

Prepare the journal entry for issuance assuming the bonds are issued at $($a$)98$ and $($b$)102.$

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Required $1$

How much interest will Boston pay $($in cash$)$ to the bondholders every six months?

$\backslash$table$[[$Par $($maturity$)$ Value,,$\backslash$table$[[$Semiannual$],[$Rate$]],,\backslash$table$[[$Semiannual Cash$],[$Interest Payment$]]],[,x,,=,]]$