On January 1, 2015, Boston Enterprises issues bonds that have a $1,750,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par.

Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103.

Journal Entry Worksheet

Record the issue of bonds with a par value of $1,750,000 at 97 cash on January 1, 2015.

Record the issue of bonds with a par value of $1,750,000 at 103 cash on January 1, 2015.

Date

General Journal

Debit

Credit

Jan 01, 2015

*Enter debits before credits

transaction list

1.

Record the issue of bonds with a par value of $1,750,000 at 97 cash on January 1, 2015.

2.

Record the issue of bonds with a par value of $1,750,000 at 103 cash on January 1, 2015.