On January 1, 2012, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

Required:

Assuming the market interest rate on the issue date is 8%, the bonds will issue at $400,000. Record the bond issue on January 1, 2012, and the first two semiannual interest payments on June 30, 2012, and December 31, 2012. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

  Jan. 1, 2012

  Jun. 30, 2012

  Dec. 31, 2012

On January 1, 2012, White Water issues $500,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.

Required:

Assuming the market interest rate on the issue date is 6%, the bonds will issue at $500,000. Record the bond issue on January 1, 2012, and the first two semiannual interest payments on June 30, 2012, and December 31, 2012. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

  Jan. 1, 2012

  Jun. 30, 2012

  Dec. 31, 2012

On January 1, 2012, White Water issues $500,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.

Required:

Assuming the market interest rate on the issue date is 6%, the bonds will issue at $500,000. Record the bond issue on January 1, 2012, and the first two interest payments on December 31, 2012, and December 31, 2013. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

  Jan. 1, 2012

  Dec. 31, 2012

  Dec. 31, 2013