On January 1, 2011, Kidman Enterprises issues bonds that have a $2,000,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par.

1.	How much interest will Kidman pay (in cash) to the bondholders every six months? (Do not round intermediate calculations. Omit the "$" sign in your response.)

Semiannual cash interest payment

$

2.	Prepare journal entries for the following.

(a)	The issuance of bonds on January 1, 2011. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1, 2011	(Click to select)Accounts receivableBonds payableCashBond interest expenseDiscount on bonds payableBond interest payableAccounts payablePremium on bonds payable
	(Click to select)Bond interest payableDiscount on bonds payablePremium on bonds payableCashBonds payableAccounts receivableAccounts payableBond interest expense

(b)	The first interest payment on June 30, 2011. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
June 30, 2011	(Click to select)Accounts receivableCashPremium on bonds payableBond interest expenseDiscount on bonds payableAccounts payableBonds payableBond interest payable
	(Click to select)Bond interest payablePremium on bonds payableBond interest expenseCashBonds payableAccounts receivableDiscount on bonds payableAccounts payable

(c)	The second interest payment on December 31, 2011. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Dec. 31, 2011	(Click to select)Accounts payableBond interest expenseBonds payableAccounts receivableCashPremium on bonds payableBond interest payableDiscount on bonds payable
	(Click to select)Discount on bonds payablePremium on bonds payableInterest payableNotes payableInterest expenseBond interest expenseCashBonds payable

3.	Prepare the journal entry for issuance of bonds assuming.

(a)	The bonds are issued at 96. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1, 2011	(Click to select)Bond interest expenseAccounts receivablePremium on bonds payableBond interest payableDiscount on bonds payableAccounts payableBonds payableCash
	(Click to select)Accounts payableCashBond interest payableBonds payableBond interest expenseAccounts receivablePremium on bonds payableDiscount on bonds payable
	(Click to select)Accounts payablePremium on bonds payableBond interest expenseBonds payableAccounts receivableBond interest payableCashDiscount on bonds payable

(b)	The bonds are issued at 104. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1, 2011	(Click to select)Premium on bonds payableAccounts payableBond interest expenseBonds payableAccounts receivableBond interest payableCashDiscounts on bonds payable
	(Click to select)Bond interest payableCashDiscount on bonds payableAccounts payableAccounts receivableBond interest expenseBonds payablePremium on bonds payable
	(Click to select)Discount on bonds payableBond interest payablePremium on bonds payableBonds payableCashAccounts payableAccounts receivableBond interest expense