Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2018, the company issues $1,810,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Required:
1. If the market interest rate is 7%, the bonds will issue at $1,810,000. 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.)
2. If the market interest rate is 8%, the bonds will issue at $1,687,008. 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.)
3. If the market interest rate is 6%, the bonds will issue at $1,944,641. 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.)