Answer: Please refer to Explanation
Explanation:
Right so now with the information above we can work on this.
The journal entries are as follows,
January 1 2021
DR Cash $580,000
CR Bonds Payable $580,000
(To record issuance of Bonds)
June 30,2021
DR Interest Expense $23,200
CR Cash ($580000 * 8% * 1/2) $23,200
(To record semi-annual interest payment on bonds)
December 31 2021
DR Interest Expense $23,200
CR Cash ($580000 * 8% * 1/2) $23,200
(To record semi-annual interest payment on bonds)
If you need any clarification do comment. Cheers.
