y 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% interes ally on June 30 and December 31. The bonds are sold at par much interest will the issuer pay (in cash) to the bondholders every six months? ware journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, ar and interest payment on December 31. pare the journal entry for issuance assuming the bonds are issued at (a) 95 and (b) 105. te this question by entering your answers in the tabs below. d1 Required 2 Required 3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

Subject: accounting 

Exercise 14-3 (Algo) Recording bond issuance and interest LO P1
On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% 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) 95 and (b) 105.
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
No
Date
View journal entry worksheet
General Journal.
Proy
2nf 5 H
Dahit
Next >
Credit
pag
augh
Transcribed Image Text:Exercise 14-3 (Algo) Recording bond issuance and interest LO P1 On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% 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) 95 and (b) 105. 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 No Date View journal entry worksheet General Journal. Proy 2nf 5 H Dahit Next > Credit pag augh
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