Question: 6) ABC Company issues $800,000 face value bonds (4 year) that pay 7% interest. ABC Company receives $770,000 for these bonds on January 1st, 2015.

6) ABC Company issues $800,000 face value bonds (4 year) that

6) ABC Company issues $800,000 face value bonds (4 year) that pay 7% interest. ABC Company receives $770,000 for these bonds on January 1st, 2015. Interest payments are made on a semi-annual basis beginning on July 1st, 2015. Required: Prepare the journal entry to record the issuance of the bonds and prepare the journal entry to record the first 2 payments of bond interest. (Hint: Remember, the 5% is an annual interest rate)

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