The first day of the fiscal year, a company issues a $700,000, 8%, 10-year bond that pays semiannual interest of $28,000 ($700,000 8% year), receiving cash of $700,000.

Question Content Area

a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.

b. Journalize the entry to record the first interest payment. If an amount box does not require an entry, leave it blank.

c. Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.