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On January 1,2024, Universe of Fun issues $700,000,7% bonds that mature in 10 years. The...

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Accounting

On January 1,2024, Universe of Fun issues $700,000,7% bonds that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 8%, and the bonds issue for $652,434. Interest is paid semiannually on June 30 and December 31.
2. & 3. Record the issuance of the bonds on January 1, the interest payments on June 30, and December 31,2024.(If no journal entry is required for a particular transaction, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)Journal entry worksheet
1
2
3
Record the bond issue.
Note: Enter debits before credits.
\table[[Date,General Jou,,Debit,Credit],[January 01,2024,Cash,>,652,434,],[Discount on Bonds Payable,,,],[Bonds Payable,,,700,000],[,,,,],[,,,,],[,,,,]]Journal entry worksheet
1
2
3
Record the first semiannual interest payment.
Note: Enter debits before credits.
\table[[Date,General Journal,Debit,Credit],[June 30,2024,Interest Expense,,],[,Cash,,],[,,,],[,,,],[,,,],[,,,]]Journal entry worksheet
1
2
3
Record the second semiannual interest payment.
Note: Enter debits before credits.
\table[[Date,General Journal,Debit,Credit],[December 31,2024,,,],[,,,],[,,,],[,,,],[,,,]]
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