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)CashBonds payableAccounts receivableBond interest expenseDiscount on bonds payableAccounts payablePremium on bonds payableBond interest payable
	(Click to select)Bond interest payablePremium on bonds payableBonds payableAccounts payableAccounts receivableDiscount on bonds payableCashBond interest expense

(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)CashPremium on bonds payableBonds payableBond interest payableBond interest expenseAccounts payableAccounts receivableDiscount on bonds payable
	(Click to select)CashAccounts receivablePremium on bonds payableBond interest expenseDiscount on bonds payableBonds payableBond interest payableAccounts payable

(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)Accounts receivableCashBond interest expenseBonds payableDiscount on bonds payableBond interest payablePremium on bonds payableAccounts payable
	(Click to select)Premium on bonds payableBonds payableNotes payableCashInterest payableDiscount on bonds payableInterest expenseBond interest expense

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)Bond interest payableBonds payablePremium on bonds payableAccounts receivableDiscount on bonds payableBond interest expenseCashAccounts payable
	(Click to select)Bonds payableAccounts payableBond interest expenseCashDiscount on bonds payableBond interest payablePremium on bonds payableAccounts receivable
	(Click to select)Bond interest expenseCashBonds payableDiscount on bonds payableBond interest payableAccounts receivablePremium on bonds payableAccounts 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)Accounts receivableBond interest payableAccounts payableCashDiscounts on bonds payableBond interest expenseBonds payablePremium on bonds payable
	(Click to select)Bond interest expenseBond interest payableAccounts receivableDiscount on bonds payableCashAccounts payableBonds payablePremium on bonds payable
	(Click to select)CashPremium on bonds payableBonds payableBond interest payableAccounts payableBond interest expenseDiscount on bonds payableAccounts receivable