Yip Inc. issued $800,000 of 8-year, 9% bonds payable on October 1, when the market rate was 8%. Yip Inc. pays interest each March 31 and September 30 and amortizes any discount or premium by the effective interest method. Yip's year-end is December 31.

Requirements

1. Calculate the cash receipt for the bond issuance.

2. Journalize Yip's issuance of the bonds.

3. Journalize Yip's first semi-annual interest payment, year-end adjustment, and the second semi-annual interest payment. Explanations are not required.