Question

Required information The following information applies to the questions displayed below.) On January 1, 2021. Splash City issues $370,000 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 $338,257 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 View journal entry worksheet General Journal No 1 Credit Date January 01, 2021 Cash Bonds Payable Debit 370,000 370,000 2 16 650 June 30, 2021 interest Expense Cash 16.650 December 31 2021 Interest Expense 16,650 Cash 16.650

Answer 1

Date credit 01/1121 Accounts Debit cash $370,000 Bonds payable Interest expense [$370000X9% x} ] $16,650 Cash $370,000 30/06/21 $16,650 - 31/12/20 Interest expense $16,650 cash $16,650 The entries are correct: