On 1/1/12 DD Lang issues 8% 10-year bonds with a par (face) value of $250000 a

On 1/1/12 DD Lang issues 8% 10-year bonds with a par (face) value of $250000 and semiannual interest payments. The bonds sell t 95 (they sell at discount).

a. Prepare the journal entry for the issuance of bonds.

b. Prepare the general journal entry for the 7/1/12 semi-annual interest payment assuming DD Lang uses the straight-line

method to calcute Discount on Bonds Payable and to allocate interest expense.

c. Prepare the general journal entry for the 12/31/12 semi-annual interest payment assuming the 2nd interest payment will be paid in cash on 1/1/13. Then post
the payment on 1/1/13.