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How do I calculate? On January 1, Boston Enterprises issues bonds that have a $1,500,000 par value, mature in 20 years, and pay 6% interest
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On January 1, Boston Enterprises issues bonds that have a $1,500,000 par value, mature in 20 years, and pay 6% 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) 96 and (b) 104. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Par (maturity) Value 1,500,000 Semiannual Rate 6.0% Semiannual Cash Interest Payment $ 90,000 X = Required 1 Required 2 > 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. General Journal Debit Credit No 1 Date January 01 Cash Bonds payable o June 30 Bond interest expense Cash December 31 Cash Discount on bonds payable Bond interest payable 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) 96 and (b) 104. No General Journal Debit Credit Date January 01 Cash Bonds payable 2 January 01 Cash Bonds payableStep by Step Solution
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