BE11-9 Ratzlaff Company issues $2 million, 10-year, 8% bonds at 97, with interest payable on

Price: $1.99

BE11-9 Ratzlaff Company issues $2 million, 10-year, 8% bonds at 97, with interest payable on

July 1 and January 1.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2008.

(b) Assuming instead that the above bonds sold for 104, prepare the journal entry to record the

sale of these bonds on January 1, 2008.