On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will the issuer pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will the issuer pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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![On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest
semiannually on June 30 and December 31. The bonds are sold at par.
1. How much interest will the issuer pay (in cash) to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
View transaction list
Journal entry worksheet
<
1
2
Record the issue of bonds at 98.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c31f947-5848-48a2-943b-5d3c9bff6f43%2Fccc452f4-108a-4dd7-88fe-4ee59940ae6f%2Fjv5ybmf_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest
semiannually on June 30 and December 31. The bonds are sold at par.
1. How much interest will the issuer pay (in cash) to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
View transaction list
Journal entry worksheet
<
1
2
Record the issue of bonds at 98.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
>
![On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest
semiannually on June 30 and December 31. The bonds are sold at par.
1. How much interest will the issuer pay (in cash) to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
View transaction list
Journal entry worksheet
1
2
3
Record the issue of bonds at par on January 1.
Date
January 01
Note: Enter debits before credits.
General Journal
Debit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c31f947-5848-48a2-943b-5d3c9bff6f43%2Fccc452f4-108a-4dd7-88fe-4ee59940ae6f%2Fosfy3z9_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest
semiannually on June 30 and December 31. The bonds are sold at par.
1. How much interest will the issuer pay (in cash) to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
View transaction list
Journal entry worksheet
1
2
3
Record the issue of bonds at par on January 1.
Date
January 01
Note: Enter debits before credits.
General Journal
Debit
Credit
>
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