Exercise 4: Review the following completed example for a bond issued at a price of 100. A $50,000, 10 year, 9% Stated rate) bond is issued on January 1 . The bond pays interest semi-annually, each January 1 and July 1. The bond's Stated rate is equal to the Effective rate at the time of issue so the bond price is 100. Review the following entries 1. 2. Entry required upon issuance of the bond. $50,000 x 1.00- $50,000 Entry on first interest payment date $50,000 x 9% x 6/12-$2,250 (Jan-June) Cash Bonds Payable Interest Expense (1) 50,0002,250 (2) 50,000 (1) (2) 2,250