Why did unions turn to strikes? There was more money to be made

Did not feel their voices were being heard

They wanted to overthrow the government

Union leaders
wanted to watch the cities suffer

They did not feel their voices were being heard

1. How much interest will Boston pay (in cash) to the bondholders every six months?

coupon payment = $1,850,000 x 7% x 1/2 = $64,750

2. Prepare journal entries to record (a) the issuance of bonds on January 1; (b) the first interest payment on June 30; and (c) the second interest payment on December 31.

January 1, bonds issued at par

Dr Cash 1,850,000

    Cr Bonds payable 1,850,000

June 30, first coupon payment

Dr Interest expense 64,750

    Cr Cash 64,750

December 31, second coupon payment

Dr Interest expense 64,750

    Cr Cash 64,750

3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 95 and (b) 105.

a)

Dr Cash 1,757,500

Dr Discount on bonds payable 92,500

    Cr Bonds payable 1,850,000

b)

Dr Cash 1,942,500

    Cr Bonds payable 1,850,000

    Cr Premium on bonds payable 92,500