Question

Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $470,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year Assuming the market interest rate on the issue date is 10%, the bonds will issue at $429,678 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.) View transaction list.

Answer 1

Date	General Journal	Debit	Credit
Jan 1, 2021	Cash	$429,678
	Discount on bonds payable	$40,322
	Bonds payable		$470,000
June 30, 2021	Interest Expense (429678*10%*6/12)	21484
	Cash (470000*9%*6/12)		21150
	Discount on bonds payable		334
Dec 31, 2021	Interest Expense (429678*10%*6/12)	21484
	Cash (470000*9%*6/12)		21150
	Discount on bonds payable		334