On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

Problem 9-4A Part 2

1. If the market interest rate is 7%, the bonds will issue at $390,154. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.

2. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.