Question: On December 31 2009 Idaho Mining Inc issued 50 million

On December 31, 2009, Idaho Mining, Inc., issued $50 million of 10-year, 6% debentures at par.
1. Compute the proceeds from issuing the debentures.
2. By using the balance sheet equation format, prepare an analysis of this bond transaction.
Show entries for the issuer concerning
(a) Issuance,
(b) First semiannual interest payment, and
(c) Payment of maturity value.
3. Show the corresponding journal entries for (a), (b), and (c) in requirement 2.
4. Show how the bond-related accounts would appear on the balance sheet as of December 31,
2009, and June 30, 2010. Assume that the semiannual interest payment due on June 30, 2010, the balance sheet date, has been made.

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