q2

Question 2 of 15 Question 2 8 points Save Answer (8 Grades) On 1/1/2020 Blue Company issued 5-year, 9% bonds with a par value of $500,000. The company received $450,000 in cash. Interest is paid semiannually on 30 June and 31 December every year. Required: (1) Prepare the journal entry to record the bonds' issuance on 1/1/2020. (2) Prepare the journal entry to record the interest payment and the amortization of bond discount or premium on 30/6/2020 (3) Prepare the journal entry to record the repayment of bonds on 31/12/2024. CLEARLY INDICATE THE DEBITS & CREDITS Example: on 1 January 2020, XYZ Company pays $10 000 cash to purchase land Answer 1/1/2020 Dr Land 10.000 Cr. Cash 10 000