Question

On January 1, 2017, Brussels enterprises issue bonds at par dated January 1, 2017, that have $3,300,000 par value, mature in 4 years and pay 10% interest semiannually on June 30 and December 31

1) Record the entry for the issuance of bonds for cash on January wa1, 2017

2) record the entry for the first semiannual interest payment on June 30, 2017

3) Record the entry for the second semiannual interest payment on December 31, 2017

4) record the entry for the maturity of the bonds on december 31, 2020.

Answer 1

(1)-Entry for the issuance of bonds for cash on January 01, 2017

Date	Accounts Tittles and explanations	Debit ($)	Credit ($)
Jan 01, 2017	Cash A/c	33,00,000
	To Bond Payable A/c		33,00,000
	[Journal Entry to record the issuance of bonds for cash on January 01, 2017]

(2)-Entry for the first semiannual interest payment on June 30, 2017

Date	Accounts Tittles and explanations	Debit ($)	Credit ($)
June 30, 2017	Bond Interest Expense A/c	165,000
	To Cash A/c [$33,00,000 x 6% x ½]		165,000
	[Journal Entry to record the first semiannual interest payment on June 30, 2017]

(3)-Entry for the second semiannual interest payment on December 31,2017

Date	Accounts Tittles and explanations	Debit ($)	Credit ($)
Dec 31, 2017	Bond Interest Expense A/c	165,000
	To Cash A/c [$33,00,000 x 6% x ½]		165,000
	[Journal Entry to record the second semiannual interest payment on December 31,2017]

(4)-Entry for the maturity of the bonds on December 31, 2020.

Date	Accounts Tittles and explanations	Debit ($)	Credit ($)
Dec 31, 2020	Bond Payable A/c	33,00,000
	To Cash A/c [$33,00,000 x 6% x ½]		33,00,000
	[Journal Entry to record the maturity of the bonds on December 31, 2020]