Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $2,100,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

Problem 9-4B Part 3

3. If the market interest rate is 7%, the bonds will issue at $2,293,116. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.