a.
Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.
Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.
To prepare:
b.
To prepare: Journal entry to record the payment of semiannual cash interest.
c.
To prepare: Journal entry to record the payment of bond payable at maturity.
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