A Company Issued 9%, 10-Year Bonds with a Par Value

question 103

Essay

A company issued 9%, 10-year bonds with a par value of $1,000,000 on September 1, 2010 when the market rate was 9%. The bonds were dated June 30, 2010. 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, 2010.
Interest Payable: $1,000,000 x 9% x 2/12 year = $15,000

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Definitions:

Association Areas

Regions of the brain that integrate information from various sensory inputs and are involved in complex processes like thinking and learning.

Somatosensory Cortex

The part of the brain that processes sensory information from various parts of the body, including touch, temperature, and pain.

Temporal Lobe

A region of the brain located beneath the lateral fissure on both cerebral hemispheres, associated with processing auditory information and memory.

Frontal Lobes

The frontal lobes are a region of the brain involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.