Moxy's Restaurant Supplies Ltd. issued $ 1,800,000, 7%, 10-year bonds on January 1, 2021. Interest is payable semi-annually on July 1 and January 1. Moxy's year-end is December 31. Assume the market rate for similar bonds is 8%. (Use the following present value factors: present value of $ 1 = 0.45639; present value of annuity = 13.59033)
Instructions
Prepare all necessary journal entries (rounding to the nearest dollar) for Moxy's on the following dates:
a) January 1, 2021.
b) July 1, 2021.
c) December 31, 2021.
d) January 1, 2022.

Question

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The Answer of Moxy's Restaurant Supplies Ltd. issued $ 1,800,000, 7%, 10-year bonds on January 1, 2021. Interest is payable semi-annually on July 1 and January 1. Moxy's year-end is December 31. Assume the market rate for similar bonds is 8%. (Use the following present value factors: present value of $ 1 = 0.45639; present value of annuity = 13.59033)
Instructions
Prepare all necessary journal entries (rounding to the nearest dollar) for Moxy's on the following dates:
a) January 1, 2021.
b) July 1, 2021.
c) December 31, 2021.
d) January 1, 2022.