On April 1, 2018, Wilson Products, Inc. issued at par $25 million of 10%, 10-year bonds payable. Interest is payable semi-annually each

April 1 and October 1.

1. What is the amount of cash paid to bondholders for interest during 2018?

$_______________ (5 points)

2. Give the adjusting entry necessary on December 31, 2018 (if any), regarding this bond issue. (5 points)

3. Interest expense on this bond issue reported in Wilson Products' 2018 income statement is: $_______________ (5 points)

4. With respect to this bond issue, Wilson Products' balance sheet on December 31, Year 2018, includes bonds payable of

$__________________ and interest payable of $_______________ (indicate $0 or "none" if the item is not reported.

(5 points)

5. Give the journal entry made by Wilson Products on April 1, 2019, to record the semi-annual payment of interest to bondholders. (5 points)