| Bond Issuance |
| On January 1, Dallas Enterprises issues bonds that have a $1,950,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. |
| | Par | 2,250,000 |
| | Term | 30 |
| | Rate | 8% |
| 1. How much interest will Boston pay (in cash) to the bondholders every six months? |
| Par (maturity) Value | | Semiannual Rate | | Semiannual Cash Interest Payment |
| | x | | = |
| 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. |
| No | Date | General Journal | Debit | Credit |
| 1 | 1-Jan |
| 2 | 30-Jun |
| 3 | 31-Dec |
| 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 105. |
| No | Date | General Journal | Debit | Credit |
| 1 | 1-Jan |
| 2 | 1-Jan |
brandon282011
AC216Unit4Assignment4-BondIssuance.xlsx
