Exercise 10-1 Recording bond issuance and interest LO P1 On January 1, 2017 Boston Enterprises Issues bonds that have a $1,800,000 par value, mature in 20 years, and pay 8% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the 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 the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Semiannual Par (maturity) Value Rate Semiannual Cash Interest Payment Required 1 Required 2 > Exercise 10-1 Recording bond issuance and interest LO P1 On January 1, 2017 Boston Enterprises issues bonds that have a $1,800,000 par value, mature in 20 years, and pay 8% Interest semiannually on June 30 and December 31. The bonds are sold at par 1. How much interest will Boston pay in cash) to the 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 the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 View transaction list Journal entry worksheet 1 2 3 Record the issue of bonds at par on January 1, 2017 Note: Enter debits before credits General Journal Debit Credit Date Jan 01. 2017 Prev 1 of 5 ! Next > Exercise 10-1 Recording bond issuance and interest LO P1 On January 1, 2017, Boston Enterprises issues bonds that have a $1,800,000 par value, mature in 20 years, and pay 8% interest semiannually on June 30 and December 31. The bonds are sold at par 1. How much interest will Boston pay (in cash) to the 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 the journal entry for issuance assuming the bonds are issued at(a) 96 and (b) 104 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104 View transaction list Journal entry worksheet 1 2 Record the issue of bonds at 96. Note: Enter debits before credits General Journal Debit Credit Date Jan 01, 2017
