Question: Question 7 (12 pts) ABC Company issues $1,000,000 face value, 10%, 5-year bonds payable on December 31, 2011. Interest is paid semiannually each June 30

Question 7 (12 pts) ABC Company issues $1,000,000 face value, 10%,

Question 7 (12 pts) ABC Company issues $1,000,000 face value, 10%, 5-year bonds payable on December 31, 2011. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 95; ABC Company uses the straight- line method of amortizing bond discount or premium. Prepare the appropriate Journal entries on the following dates: a) December 31, 2011 to record the issuance of bonds b) June 30, 2012 to record the first interest payment December 31, 2016 to record the last interest payment & redemption of bonds

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