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On January 1, 2021, Water Mania issues $1,000,000 of 6% bonds, due in ten years, with interest payable semi-annually on June 30 and December
On January 1, 2021, Water Mania issues $1,000,000 of 6% bonds, due in ten years, with interest payable semi-annually on June 30 and December 31 each year. Required: 1. If the market interest rate is 6%, the bonds will issue at $1,000,000. Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021. 2. If the market interest rate is 7%, the bonds will issue at $928,938. Record the bond issue on January 1, 2021, and the first two semi- annual interest payments on June 30, 2021, and December 31, 2021. 3. If the market interest rate is 5% the bonds will issue at $1,077,946. Record the bond issue on January 1, 2021, and the first two semi- annual interest payments on June 30, 2021, and December 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market interest rate is 6%, the bonds will issue at $1,000,000. Record the bond issue on January 1, 2021, and the first two semi- annual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 12 3
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