On January 1, 2000, Martin Marietta Corporation sold bonds with a face value of $950,000 and a coupon rate of 8%. The bonds mature in 4 years and pay interest semiannually every June 30th and December 31st. Martin Marietta uses the

straight-line amortization method. Assume the market rate of interest is 12%, annually. (80 POINTS)

Required:

a. Provide the journal entry to record the issuance of the bonds

b. Provide a journal entry to record the interest payments on June 30th and December 31st.

c. What bonds payable will Martin Marietta Corporation report on December 31, 2002 Balance Sheet?