Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, Harrington Corporation sold...
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Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, Harrington Corporation sold $96,000 of 15 -year, 11% bonds. The bonds sold for $92,000 and pay interest semiannually on June 30 and December 31 . Required: 1. Prepare the journal entry to record the sale of the bonds. If an amount box does not require an entry, leave it blank. Ja 2. Calculate the amount of the semiannual interest payment. Round your answer to the nearest whole dollar and use the same in subsequent calculations. 3. Prepare the entry for the first interest payment on June 30 to recognize the payment of interest and interest expense. If an amount box does not require an entry, leave Jur 4. Calculate the annual interest expense for the first year. $
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Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, Harrington Corporation sold $96,000 of 15 -year, 11% bonds. The bonds sold for $92,000 and pay interest semiannually on June 30 and December 31 . Required: 1. Prepare the journal entry to record the sale of the bonds. If an amount box does not require an entry, leave it blank. Ja 2. Calculate the amount of the semiannual interest payment. Round your answer to the nearest whole dollar and use the same in subsequent calculations. 3. Prepare the entry for the first interest payment on June 30 to recognize the payment of interest and interest expense. If an amount box does not require an entry, leave Jur 4. Calculate the annual interest expense for the first year. $ 