Question: Baxter Co . decides to issue the following bond: A $ 1 0 0 , 0 0 0 2 0 - year Bond bearing 6

Baxter Co. decides to issue the following bond:
A $100,00020-year Bond bearing 6% interest. Interest payments are to be made semi-annually. The current market rate for a similar bond is 8%.
Required:
Determine the issue price for the bonds.
Prepare the journal entry to record the issue of the bond.
Prepare the journal entry to record the first semi-annual interest payment, assuming straight-line amortization.

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