Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.