On January 1, Boston Enterprises issues bonds that have a $1,600,000 par value, mature in 20 years, and pay 8% 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, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.

Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Semiannual Semiannual Cash Par (maturity) Value Interest Payment Rate View transaction list Journal entry worksheet 1 2 3 Record the issue of bonds at par on January 1 Note: Enter debits before credits. Date General Journal Credit Debit January 01 Record entry View general journal Clear entry Journal entry worksheet 1 2 Record the issue of bonds at 98 Note: Enter debits before credits. General Journ Date Debit Credit January 01 Record entry Clear entry View general journal