Exercise 10-3 Recording bond issuance and interest LO P1 On January 1, Boston Enterprises Issues bonds that have a $1,350,000 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. (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) 97 and (b) 103. Answer is not complete. 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, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. No Date General Journal Debit Credit January 01 Cash 1,350,000 Bonds payable 1,350,000 1 54,000 2 June 30 Bond Interest expense Cash OS 54,000 54,000 3 December 31 Bond interest expense > 54,000 Cash 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Credit Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103. No Date General Journal Debit January 01 Cash 1,309,500 Discount on bonds payable Bonds payable 1 1,350,000 2 January 01 1,390,500 Cash Bonds payable Premium on bonds payable 1.350,000 40,500