Reed Corp. sells $500,000 of bonds to private investors on January 1, 2020. The bonds are due in five years, have a 8% coupon rate, and interest is paid semi-annually on June 30 and December 31. The bonds were sold to yield 6%.

Required:

1 Determined the bond issue prince.

2 Prepare journal entry to record the interest payment on June 30, 2020.

3 Prepare journal entry to record the interest payment on December 31, 2020.

4 What was the bond interest expense reported in Reeds 2020 income statement?

5 How would the bonds be reported on the balance sheet on December 31, 2020, the fiscal year-end?