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Bonds payable-issued between interest dates Bunny Corporation received authorization on December 31, Year 1, to issue $2,500,000 of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at a price of 100, plus accrued interest, on February 28, Year 2, two months after the authorization of the bond issue.
Question 1: Prepare the journal entry at February 28, Year 2, to record the issuance of the bonds.
Question 2: Prepare the journal entry at June 30, Year 2 to record the first semiannual interest payment on the bonds
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