Question

contract rate wing data relate to a $2,000,000, 8% bond a selected semiannual interest period: $2,125,000 g amount at beginning of period during period nse allocable to the period 160,000 148,750 ercises BE 11-1 Issuing bonds at face amount Obj.2 On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 6% 10-year bond that pays semiannual interest of $150,000 ($5,000,000 X 6% X ½ year ) , recein- ing cash of $5,000,000. Journalize the entries to record (A) the issuance of the bonds, (B) the first interest payment on June 30, and (C) the payment of the principal on the maturity date BE 11-2 Issuing bonds at a discount On the first day of the fiscal year, a company issues emiannual interest of Obj.2

answer please

Answer 1

BE 11-1
		Debit	Credit
a	Cash	5000000
	Bonds payable		5000000
	(To record issuance of Bonds)
b	Interest expense	150000
	Cash		150000
	(To record first interest payment)
c	Bonds payable	5000000
	Cash		5000000
	(To record payment on maturity date)