On January 1, Renewable Energy issues bonds that have a $26,000 par value, mature in ten years, and pay 18% interest semiannually on June 30 and December 31.

1.Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 103.

2.How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?

-Record the issuance for bond at 99.

Date

General Journal

Debit

Credit

Jan 01

-Record the issuance for bond at 103.

Date

General Journal

Debit

Credit

Jan 01

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