Question

What would be the journal entries along with debits/credits for

-bond issue on January 01, 2021

-the first semiannual interest payment on June 30, 2021

-the second semiannual interest payment on December 31, 2021

Required information [The following information applies to the questions displayed below.] On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $480,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 7%, the bonds will issue at $524,141. 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 answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 Record the bond issue. Note: Enter debits before credits. Debit Credit Date January 01, 2021 General Journal Cash Premium on Bonds Payable Record entry Clear entry View general journal

Answer 1

Journal entry

date	account and explanation	Debit	Credit
Jan 1	Cash	524141
	Bonds payable		480000
	Premium on bonds payable		44141
June 30	Interest expense (524141*7%*6/12)	18345
	Premium on bonds payable	855
	Cash (480000*8%*6/12)		19200
Dec 31	Interest expense (523286*3.5%)	18315
	Premium on bonds payable	885
	Cash		19200