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First to post: complete part 1 and part 2(a) Second to post: complete part 2(b) and part 2(c) Third to post: complete part 3(a) Fourth
- First to post: complete part 1 and part 2(a)
- Second to post: complete part 2(b) and part 2(c)
- Third to post: complete part 3(a)
- Fourth to post: complete part 3(b)
On January 1, 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.
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How much interest will Boston pay (in cash) to the bondholders every six months?
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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.
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Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
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