Exercise 14 6 Bonds issuance effective interest LO14 2 The Gorman Group issued $970,000 of 13 bonds on June 30, 2013, for $1,042,973 The bonds were dated on June 30 and mature on June 30, 2033 (20 years) The market yield for bonds of similar risk and maturity is 12 Interest is paid semiannually on December 31 and June 30 Required Complete the below table to record the company's journal entry (Enter interest rate to 1 decimal place ) 1 Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2013 (If no entry is required for a transaction, select No journal entry required in the first account field ) 2 Prepare the journal entry to record interest on December 31, 2013 (at the effective rate) (If no entry is required for a transaction, select No journal entry required in the first account field ) 3 Prepare the journal entry to record interest on June 30, 2014 (at the effective rate) (If no entry is required for a transaction, select No journal entry required in the first account field )

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Exercise 14-6 Bonds; issuance; effective interest [LO14-2] The Gorman Group issued $970,000 of 13% bonds on June 30, 2013, for $1,042,973. The bonds were dated

Exercise 14-6 Bonds; issuance; effective interest [LO14-2]

The Gorman Group issued $970,000 of 13% bonds on June 30, 2013, for $1,042,973. The bonds were dated on June 30 and mature on June 30, 2033 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30.

Required:

Complete the below table to record the company's journal entry. (Enter interest rate to 1 decimal place.)

1.	Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

2.	Prepare the journal entry to record interest on December 31, 2013 (at the effective rate). (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

3.	Prepare the journal entry to record interest on June 30, 2014 (at the effective rate). (If no entry is required for a transaction, select "No journal entry required" in the first account field.)