Exercise Algorithmic
Interest Payments and Interest Expense for Bonds Straight Line
On January Harrington Corporation sold $ of year, bonds. The bonds sold for $ and pay interest semiannually on June and December
Required:
Prepare the journal entry to record the sale of the bonds.
Jan.
Record issuance of bonds at discount
Calculate the amount of the cash semiannual interest payment. Round your answer to the nearest whole dollar, if required.
$
Prepare the entry at June to recognize the payment of interest and interest expense. Round your answers to the nearest whole dollar, if required.
June
Record interest expense
Calculate the annual interest expense for Round your answer to the nearest whole dollar, if required.
$
