Bonds Issued at Par - Basic Concepts

Bonds issued at par - basic concepts
On March 1, Year 1, Hubbard Co. issued at a price of 100 $20 million of 8%, 25-year bonds payable. Interest is payable semiannually each March 1 and September 1.
(a) What is the amount of cash paid to bondholders for interest during Year 1?
$_______________
(b) Give the adjusting entry necessary at December 31, year 1 (if any), regarding this bond issue.
(c) Interest expense on this bond issue reported in Hubbard's Year 1 income statement is:
$_______________
(d) With respect to this bond issue, Hubbard's balance sheet at December 31, Year 1, includes bonds payable of $_______________ and interest payable of $_______________. (indicate $0 or "none" if the item is not reported.)
(e) Give the journal entry made by Hubbard on March 1, Year 2, to record the semiannual payment of interest to bondholders.

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(a) $800,000 ($20,000,000 x 8%...

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