Question: Problem 3 Long-Term Liabilities 2. (13 points) On January 1, 2018, BBX issued $400,000 of its 8% bonds for $368,000. The bonds were priced

Problem 3 Long-Term Liabilities 2. (13 points) On January 1, 2018, BBX

Problem 3 Long-Term Liabilities 2. (13 points) On January 1, 2018, BBX issued $400,000 of its 8% bonds for $368,000. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. BBX records interest at the effective rate. Required: 1. Prepare the journal entry to record the issuance of the Bonds. 2. Prepare the journal entry to record interest on June 30, 2018. 3. Prepare the journal entry to record interest on December 31, 2018. 4. What is the amount(s) related to the bonds that BBX will report in its income statement for the year ended December 31, 2018 5. What is the amount(s) related to the bonds that BBX will report in the balance sheet at December 31, 2018

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