2. On January 1, 2020, Danzer Company issued $37,400,000 of 10-year, 8% bonds at a...
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2. On January 1, 2020, Danzer Company issued $37,400,000 of 10-year, 8% bonds at a market (effective) interest rate of 10%, receiving cash of $32,739,152. Interest on the bonds is payable semiannually on June 30 and December 31. Required: a. Journalize the entries to record the following: 1) Issuance of the bonds. Date Description Debit Credit Jan. 1 Cash 32,739,152 4,660,848 Discount on bonds payable Bonds payable 37,400,00 2) First semiannual interest payment. (Round your answer to the nearest dollar.) Date Debit Credit Description Interest Expense Discount on bonds payable Cash 3) Second semiannual interest payment. (Round your answer to the nearest dollar.) Date Debit Credit Description Interest Expense Discount on bonds payable Cash b. Determine the amount of the bond interest expense for the first year
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