Long-term Liabilities And Receiva Recording the Issuance of bonds On March 1, 2004, Grimes Corporation issues $800,000 of 10-year bonds dated January 1, 2004 at par. The bonds have a contract(stated)interest rate of 12% and pay interest semiannual Cash 816.000 Interest expense 16.000 Bonds payable $800.000X0.12x2/12 ContinuedRecording the Issuance of Bonds On March 1, 2004, Grimes Corporation issues $800,000 of 10-year bonds dated January 1, 2004 at par. The bonds have a contract (stated) interest rate of 12% and pay interest semiannually. Cash 816,000 Interest Expense 16,000 Bonds Payable 800,000 $800,000 x 0.12 x 2/12 Continued Intermediate Accounting 11 Long-term Liabilities And Receivables