answer in text form please (without image) On January 1, Boston Enterprises issues bonds that have a $1,750,000 par value, mature in 20 years, and pay 10% interestsemiannually 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) thesecond interest payment on December 31.3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103.View transaction listJournal entry worksheet1Record the issue of bonds at 97.2Note: Enter debits before credits.DateJanuary 01Record entryGeneral JournalCashDiscount on bonds payableBonds payableClear entryDebit1,697,500Credit1,750,000View general journal< Prev2 of 10T4Next >

Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Answered: On January 1, Boston Enterprises issues…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?
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Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
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