Answer:
cash 3,400,000 debit
bonds payable 3,400,000 credit
--to record issuance--
interest expense 153,000 debit
cash 153,000 credit
--to record first interest payment--
interest expense 153,000 debit
cash 153,000 credit
--to record second interest payment--
bonds payable 3,400,000 debit
interest expense 153,000 debit
cash 3,553,000 credit
--to record last interest payment and maturity --
Explanation:
interest expense for the bonds semianual payment
3,400,000 x 9% x 1 / 2 = 153,000
on maturity will have the interest and principal as cash outlay and we write-off thebonds payable account
