Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ebook exercise 9-71 interest payments and interest

eBook Exercise 9-71 interest Payments and Interest Expense for Bonds (Straight Line) On January 1,...

80.2K

Verified Solution

Question

Accounting

image
image
eBook Exercise 9-71 interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020, Harrington Corporation sold 5425,000 of 15-year, 11% bonds. The bonds sold for $395,000 and pay interest semiannually on June 30 and December 31. Required: 1. Prepare the journal entry to record the sale of the bonds. 2020 Jan. 1 Cash 395,000 Discount on Bonds Payable Bonds Payable Record issuance of bands at discount 19,000 425.000 Che W 1. When bonds are issued, any premium or discount is recorded in a separate valuation account 2. Calculate the amount of the semiannual interest payment. 23,375 X 20 a D 10:41 PL 4/1/200 C 396,000 X 3. Prepare the entry at June 30, 2020, to recognize the payment of interest and interest expense. 2020 June 30 Interest Expense Discount on Bonds Payable 1,000 Cash 395,000 X Record interest expense Feedback 7 Check My Work 3. When bonds are issued, any premium or discount is recorded in a separate valuation account.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students