Question

2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.)

Answer 1

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.