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

question 53

Essay

A company issued 9%,10-year bonds with a par value of $1,000,000 on September 1,2013,when the market rate was 9%.The bonds were dated June 30,2013.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.
(b) Prepare the issuer's journal entry to record the semiannual interest payment on December 31,2013.

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Definitions:

Genetic Mutations

Permanent alterations in the DNA sequence that makes up a gene, leading to variations in the phenotype of an organism, which can be beneficial, neutral, or harmful.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.

Glucose

A simple sugar and an important energy source in living organisms, also one of the main products of photosynthesis.

Bacterium's Resource

Bacterium's Resource refers to the nutrients and environmental conditions that support the growth and survival of bacteria.