Prepare journal entries to record the issuance of bonds

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Reference no: EM131222551

On January 1, 2015, Boston Enterprises issues bonds that have a $1,750,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par.

Prepare journal entries to record (a) the issuance of bonds on January 1, 2015; (b) the first interest payment on June 30, 2015; and (c) the second interest payment on December 31, 2015.

1. Record the issue of bonds at par on January 1, 2015.

2. Record the interest payment on June 30, 2015.

3. Record the interest payment on December 31, 2015.

Reference no: EM131222551

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