Seesten Company Was Ready to Sell 8-Year,10% Bonds at a Face

Short Answer

Seesten Company was ready to sell 8-year,10% bonds at a face value of $2,000,000 on January 1,20X9.Because of delays and market conditions,the bonds were not sold until March 1,20X9.The bonds pay interest every June 30 and December 31.The bonds were sold at par plus accrued interest.What are the necessary journal entries for Seesten Company on March 1,20X9,and June 30,20X9?
$\begin{array}{l}\begin{array}{lll}&&\underline {\text { March } 1,20 X9}\\A)&\text { Cash } & 2,033,333 & \\&\quad \text { Bonds Payable } & & 2,000,000 \\&\quad \text { Interest Payable } & &33,333 \\B)&\text { Cash } & 2,033,333 & \\&\quad \text { Bonds Payable } & & 2,000,000 \\&\quad \text { Interest Revenue } & &33,333 \\C)&\text { Cash } & 2,033,333 & \\&\quad \text { Bonds Payable } & & 2,000,000 \\&\quad \text { Premium on Bond }\\&\quad \text { Payable } & &33,333 \\D)&\text { Cash } & 2,033,333 & \\&\quad \text { Bonds Payable } & & 2,000,000 \\&\quad \text { Premium on Bond }\\&\quad \text { Payable } & &33,333 \\E)&\text { Cash } & 1,066,667 & \\&\quad \text { Bonds Payable } & & 2,000,000 \\&\quad \text { Interest Payable } & &66,667 \\\end{array}\begin{array}{lll}&\underline {\text { June } 30,20 X9}\\\text { Interest Payable } &33,333 \\ \text { Interest Expense } &66,667 \\ \quad \text { Cash }&&100,000\\\text { Interest Expense } & 100,000 \\ \quad \text { Cash }&&100,000\\\\\text { Interest Expense } & 97,917 \\\text { Premium on Bond }\\\text { Payable } & 2,083 \\ \quad \text { Cash }&&100,000\\\text { Interest Expense } & 66,667 \\\text { Premium on Bond }\\\text { Payable } & 33,333 \\ \quad \text { Cash }&&100,000\\\text { Interest Expense } & 66,667 \\\text { Payable } & 133,333 \\ \quad \text { Cash }&&200,000\\\end{array}\end{array}$