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Exercise $10-3($Algo$)$ Recording bond issuance and interest LO P$1$

On January $1,$ Boston Enterprises issues bonds that have a $$2,000,000$ par value, mature in $20$ years, and pay $10\%$ interest semiannually on June $30$ and December $31.$ The bonds are sold at par.

How much interest will the issuer pay $($in cash$)$ to the bondholders every six months?

Prepare journal entries to record $($a$)$ the issuance of bonds on January $1,(b)$ the first interest payment on June $30,$ and $($c$)$ the second interest payment on December $31.$

Prepare the journal entry for issuance assuming the bonds are issued at $($a$)96$ and $($b$)104.$

Complete this question by entering your answers in the tabs below.

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Required $2$

Required $3$

How much interest will the issuer pay $($in cash$)$ to the bondholders every six months?

$\backslash$table$[[$Par $($maturity$)$ Value,$\backslash$table$[[$Semiannual$],[$Rate$]],\backslash$table$[[$Semiannual Cash$],[$Interest Payment$]],],[,,,=$