Please answer the following questions, thnak you! 1) On January 1, 2018, Milan E

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Please answer the following questions, thnak you!

1) On January 1, 2018, Milan Enterprises issued bonds at par that have a $3,500,000 par value and mature in 10 years. The bonds pay 7% interest semiannually on June 30 and December 31. Prepare the entry for the issuance of bonds for cash on January 1, 2018 Date Account titles Debit Credit 1) Prepare theeetry for the first semiannual interest payment on June 30, 2018 Date Account titles Debit Credit 6/30/18 Capri Corporation issued bonds with a par value of $500,000. The bonds pay semi-annual interest of 8%. Because the stated rate of interest was less than the market rate on the date of issuance, they were sold at 96 2) Prepare the entry to record the issuance of the bonds. Date Account titles Debit Credit

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Journal Entries - Milan Enterprises Date Particulars Debit Credit 1-Jan-18 Cash Dr $3,500,000.00            To Bond Payable $3,500,000.00 (To record issue of bond) 30-Jun-18 Interest Expense Dr $122,500.00            To Cash $122,500.00 (To record semi annual interest payment)

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