The Cleveland Historical Society issues 40 million of 6 percent
The Cleveland Historical Society issues $40 million of 6 percent, 15-year bonds at a price of $36,321,000 to finance the construction of a new museum. The price reflects an annual yield of 7.0 percent.
1. Prepare the journal entry to record the issuance of the bonds. Indicate the category of funds (e.g., unrestricted, temporarily restricted, permanently restricted) in which the entry would be made.
2. Prepare the journal entry to record the first semiannual payment of bond interest.
3. Prepare the journal entry to record the second semiannual payment of bond interest.

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