Remember: Interest = Principal x Rate x Time Principal amount borrowed) Rate (annual interest rate) Time (# of years) 1. On June 30, 2014 Johnson & Sons issued a 5-year $10,000 bond bearing 10% annual interest, paid semi-annually (the market rate is also 10%). What are the various entries on the Income Statement and Balance Sheet for Johnson & Sons for full-year 2014 (year-end is December 31, 2014)? Ignore the impact of taxes. Balance Sheet Income Statement