On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.

1.	How much interest will Kidman pay (in cash) to the bondholders every six months? (Do not round intermediate calculations. Omit the "$" sign in your response.)

Semiannual cash interest payment

$

2.	Prepare journal entries for the following.

(a)	The issuance of bonds on January 1, 2011. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1, 2011	(Click to select)Accounts receivableBond interest expenseDiscount on bonds payablePremium on bonds payableBonds payableBond interest payableAccounts payableCash
	(Click to select)Bond interest expenseBonds payableAccounts receivableBond interest payableCashDiscount on bonds payableAccounts payablePremium on bonds payable

(b)	The first interest payment on June 30, 2011. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
June 30, 2011	(Click to select)Bond interest expensePremium on bonds payableBond interest payableDiscount on bonds payableAccounts payableCashBonds payableAccounts receivable
	(Click to select)Bond interest payableDiscount on bonds payableBond interest expenseBonds payablePremium on bonds payableAccounts payableAccounts receivableCash

(c)	The second interest payment on December 31, 2011. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Dec. 31, 2011	(Click to select)Bond interest payablePremium on bonds payableCashDiscount on bonds payableAccounts payableBond interest expenseAccounts receivableBonds payable
	(Click to select)Interest payableBond interest expenseNotes payableBonds payablePremium on bonds payableInterest expenseDiscount on bonds payableCash

3.	Prepare the journal entry for issuance of bonds assuming.

(a)	The bonds are issued at 98. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1, 2011	(Click to select)Bonds payableCashDiscount on bonds payablePremium on bonds payableAccounts payableBond interest expenseBond interest payableAccounts receivable
	(Click to select)Bond interest payableAccounts receivableBond interest expensePremium on bonds payableBonds payableCashDiscount on bonds payableAccounts payable
	(Click to select)Premium on bonds payableBond interest payableBond interest expenseDiscount on bonds payableAccounts receivableBonds payableCashAccounts payable

(b)	The bonds are issued at 102. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1, 2011	(Click to select)CashAccounts payableAccounts receivablePremium on bonds payableBond interest payableBonds payableDiscounts on bonds payableBond interest expense
	(Click to select)Bonds payableDiscount on bonds payableCashBond interest payableAccounts payableBond interest expensePremium on bonds payableAccounts receivable
	(Click to select)Bond interest payablePremium on bonds payableAccounts receivableBond interest expenseCashDiscount on bonds payableAccounts payableBonds payable