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On January 1, 2017, Boston Enterprises issues bonds that have a $2,200,000 par value, mature in 20 years, and pay 9% interest semiannually on June
On January 1, 2017, Boston Enterprises issues bonds that have a $2,200,000 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 Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, 2017; (b) the first interest payment on June 30, 2017; an the second interest payment on December 31, 2017 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104. awarded ored Complete this question by entering your answers in the tabs below. B Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Herences Par (maturity) Value Semiannual Rate 903 = Semiannual Cash Interest Payment 198 000 2.200.000 Required 2 > e second interest payment on December 31, 2017 Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record (a) the issuance of bonds on January 1, 2017; (b) the first interest payment on 2017; and (c) the second interest payment on December 31, 2017. General Journal Credit No 1 Date Jan 01, 2017 Debit 2,200,000 Cash Bonds payable 2,200,000 2 Jun 30, 2017 198,000 Bond interest expense Cash 198,000 3 Dec 31, 2017 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ed Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104. Credit No 1 Date Jan 01, 2017 General Journal Cash Discount on bonds payable Bonds payable Debit 2,112,000 88,000 2,112,000 2 Jan 01, 2017 2,288,000 Cash Bonds payable Premium on bonds payable 22,000,000 88,000
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