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On January 1, Boston Enterprises issues bonds that have a $2,150,000 par value, mature in 20 years, and pay 6% interest semiannually on June 30

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On January 1, Boston Enterprises issues bonds that have a $2,150,000 par value, mature in 20 years, and pay 6% 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) 97 and (b) 103. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Semiannual Par (maturity) Value Semiannual Cash Rate Interest Payment Journal entry worksheet Record the issue of bonds at par on January 1. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal Journal entry worksheet Record the interest payment on June 30. Note: Enter debits before credits. General Journal Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the interest payment on December 31. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal Journal entry worksheet 1 2 > Record the issue of bonds at 97. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal Journal entry worksheet 1 2 > Record the issue of bonds at 103. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal

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