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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 i. Prepare the journal entry at February 28, Year 2, to record the issuance of the bonds.
Question ii. Prepare the journal entry at June 30, Year 2 to record the first semiannual interest payment on the bonds.
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