On January 1, Boston Enterprises issues bonds that have a $2,100,000 par value, mature in 20...

  

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On January 1, Boston Enterprises issues bonds that have a $2,100,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will the issuer pay (in cash) to the bondholders every six months? 2. 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. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102. Journal entry worksheet 1 2 Record the issue of bonds at 98. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Cash Discount on bonds payable > On January 1, Boston Enterprises issues bonds that have a $2,100,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will the issuer pay (in cash) to the bondholders every six months? 2. 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. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102. Journal entry worksheet 1 2 Record the issue of bonds at 98. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Cash Discount on bonds payable >

Answer rating: 100% (QA)

Required 1 1 The interest paid to bondholders every six months can be calculated using the formula t... View the full answer