Question: Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2018, the company issues $3,000,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
(a) If the market interest rate is 10%, the bonds will issue at $2,813,067. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
(b) If the market interest rate is 8%, the bonds will issue at $3,203,855. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)