On January 1, Boston Enterprises issues bonds that have a $1,200,000 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 the issuer 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much interest will the issuer pay (in cash) to the bondholders every six months? Par (maturity) Value Semiannual Semiannual Cash Rate Interest Payment Required 2 > Journal entry worksheet 2 3 Record the issue of bonds at par on January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 1,200,000 Cash Bonds payable 1,200,000 Record entry Clear entry View general journal Journal entry worksheet Record the interest payment on December 31. Note: Enter debits before credits. Date Credit General Journal Bond interest expense Cash Debit 54,000 December 31 54,000 Record entry Clear entry View general Journal are issued at (a) 98 and (D) 102. View transaction list Journal entry worksheet Record the issue of bonds at 102. Note: Enter debits before credits. Date General Journal Debit Credit January 01 1,224,000 Cash Bonds payable Premium on bonds payable 1,200,000 24,000 Record entry Clear entry View general journal