Journalize issuance of the bonds and the first semiannual interest payment under each of the following three assumptions. The
company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Round
to the nearest dollar.)
View the bond assumptions.
(Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest
whole dollar.)
Bond Assumptions
1. Ten-year bonds payable with face value of $93,000 and stated interest rate of 10%, paid
semiannually. The market rate of interest is 10% at issuance. The present value of the
bonds at issuance is $93,000.
2. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present
value of the bonds at issuance is $82,352.
3. Same bonds payable as in assumption 1, but the market interest rate is 8%. The present
value of the bonds at issuance is $105,602.