Question

Required information [The following information applies to the questions displayed below.) Part 4 of 4 Legacy issues $680,000 of 6.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $645,669 and their market rate is 8% at the issue date. points 4. Prepare the journal entries to record the first two interest payments. eBook View transaction list View journal entry worksheet References Credit No 1 Date Jun 30, 2017 General Journal Bond interest expense Discount on bonds payable Cash Debit 25,827 3,727 22,100 2 Dec 31, 2017 Bond interest expense Discount on bonds payable Cash 25,976 3,876 22,100

Answer 1

4)
	Date	General Journal				Debit	Credit
	30-Jun	interest expense				25827
		discount on notes payable					3727
		cash					22,100
	31-Dec	interest expense				25976
		discount on notes payable					3876
		cash					22100