Question 3

On April 15, 20x1, a publicly accountable entity issued bonds dated December 31, 20x0.

The bond characteristics are as follows:

Face value of bonds $100,000,000

Coupon rate 3.7%

Yield to maturity on date of issue 3.9%

Term 30 years

Interest payment dates Jun 30 and Dec 31

Required

Prepare all journal entries relative to this bond issue for the year ended December 31,

20x1.