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On January 1, 2019, Rabo Corporation issued $1,400,000, 7%, 10-year bonds, and received $1,217,889 in...

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Accounting

On January 1, 2019, Rabo Corporation issued $1,400,000, 7%, 10-year bonds, and received $1,217,889 in cash proceeds. The market rate at the date of issuance was 9%. The bonds pay interest semiannually on June 30th and December 31st. Rabo Corporation uses the effective interest method for amortization of bond premium or discount. Prepare the general journal entry to record interest expense and the cash payment of interest on June 30th, 2019.

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