A Company Issued 9%,10-Years Bonds with a Par Value of $1,000,000

question 18

Essay

A company issued 9%,10-years bonds with a par value of $1,000,000 on September 1,Year 1 when the market rate was 9%.The bonds were dated June 30,Year 1.The bond issue price included accrued interest.Interest is paid semiannually on December 31 and June 30.
(a)Prepare the issuer's journal entry to record the issuance of the bonds on September 1.
(b)Prepare the issuer's journal entry to record the semiannual interest payment on December 31,Year 1.

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Definitions:

Confounded

In research, refers to an error or problem that obscures the effects of the variables being studied because they are mixed with or influenced by other variables.

Interaction

The reciprocal action or influence that entities have on each other, highlighting the dynamic and often complex exchanges.

Credibility

The quality of being trusted and believed in, or the degree to which a source or piece of information is considered accurate and reliable.

Clothing Style

The manner in which an individual combines pieces of clothing to express their personal style or adhere to cultural norms.