Answer:
The first interest payment:
Dr interest expense $144,000
Cr cash $144,000
The issuance of the remaining bonds"
Dr cash $400,000
Cr bonds payable $400,000
Explanation:
The first interest paid on the bonds on 30 June is $144,000 ($3,600,000*8%*6/12) which is debited to interest expense account and credited to cash account as outflow of cash from the company.
The cash received from selling the remaining bonds is par value of $400,000 which is debited to cash account and credited to bonds payable account.
