Exercise 14-1 Recording bond issuance and interest LO P1 On January 1, 2017, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% 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 the second interest payment on December 31, 2017 3. Prepare the Journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102 Answer is not complete 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) 98 and (b) 102. No Date General Journal Debit Jan 01, 2017 Cash 1,440,000 Discount on bonds payable 80,000 Bonds payable Credit 1 OO 1,500,000 2 Jan 01, 2017 1,500,000 Cash Premium on bonds payable Bonds payable 00.000 1,500,000 3