Exercise 10-3 (Algo) Recording bond issuance and interest LO P1 On January 1, Boston Enterprises issues bonds that have a $1,300,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will the issuer pay (in cash) to the bondholders every six months? 2. 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. 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 the issuer pay (in cash) to the bondholders every six months? Par (maturity) Value Semiannual Rate Semiannual Cash Interest Payment Required 2 > Required 1 Required 2 Required 3 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. View transaction list Journal entry worksheet 2 3 Record the issue of bonds at par on January 1. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Journal entry worksheet < 1 2 3 Record the interest payment on June 30. Note: Enter debits before credits. Date June 30 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the interest payment on December 31. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general Journal Journal entry worksheet 1 2 Record the issue of bonds at 96. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general Journal > Journal entry worksheet < 1 2 Record the issue of bonds at 104. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general journal