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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 $470,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. interest rate is 7%, the bonds will issue at $513,221. 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 23 Record the bond issue. Note: Enter debits before credits. General Journal Debit Date Credit January 01, 2021 View general journal Record entry Clear entry

Answer 1

Answer Journal Entry Date 1 Jan, 01 2021 Credit Debit $513,221 General Journal Cash Bonds Payable Premium on Bonds Payable ($513,221 - $470,000) (To record the issue bonds at premium) $470,000 $43,221 $17,963 $837 2 June, 30 2021 Interest Expense ($513,221 x 7% x 1/2) Premium on Bonds Payable ($18,800 - $17,963) Cash ($470,000 x 8% x 1/2) (To record the interest expenses) $18,800 3 Dec, 31 2021 Interest Expense [($513,221 - $837) x 7% x 1/2] Premium on Bonds Payable ($18,800 - $17,933) Cash ($470,000 x 8% x 1/2) (To record the interest expenses) $17,933 $867 $18,800