ISSUANCE OF BONDS PAYABLE AT DISCOUNT

On January 1, XYZ Company issues 100,000, 12% 30year bond for a price of 95.50% with interest to be paid semi-annually on June 0 and December 31 for cash.

Required;

1. How much will be the carrying value, face value, and the premium of the bond?

2. What is the journal entry to record the issuance of bonds?

3. What is the journal entry to record the interest expense on bonds issued at discount?

4. What is the journal entry to record the maturity of bonds issued at discount