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On January 1, 2015, Boston Enterprises issues bonds that have a $2,000,000 par value, mature in 20 years, and pay 10% interest semiannually on June
On January 1, 2015, Boston Enterprises issues bonds that have a $2,000,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? Par (maturity) Value Semiannual Rate Semiannual Cash Interest Payment 2. Prepare journal entries to record (a) the issuance of bonds on January 1, 2015; (b) the first interest payment on June 30, 2015; and (c) the second interest payment on December 31, 2015. View transaction list IX: > Record the issue of bonds at par on January 1, 2015. 1 2 Record the interest payment on June 30, 2015. 3 Record the interest payment on December 31, 2015. Credit Note : journal entry has been entered Record entry Clear entry View general journal 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104. View transaction list X .. 1 Record the issue of bonds with a par value of $2,000,000 at 96 cash on January 1, 2015. 2 Record the issue of bonds with a par value of $2,000,000 at 104 cash on January 1, 2015. Credit Note : journal entry has been entered Record entry Clear entry View general journal
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