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Svetradugi [14.3K]
2 years ago
10

On January 1, $500,000 of 8%, 10-year bonds were sold for $530,000. The bonds require semiannual interest payments on June 30 an

d December 31. What's the correct entry for recording the June 30 interest payment on the bonds?
Business
1 answer:
masha68 [24]2 years ago
7 0

Answer and Explanation:

The journal entry is given below:

<u>Date       Accounting & Explanation       Debit ($)      Credit ($)</u>

30th June     Expenses account interest   18,500

                     Amortization of the bonus

                       premium due will be:

                                    (\frac{30000}{20} )                         1,500

                            Accounts cash:

                     (500000\times 8 \ percent\times \frac{6}{12})                            20,000

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