Question

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 $570,000 of 8% bonds, due in 20 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 $630,862. 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.)

Answer 1

Date	General Journal	Debit	Credit
Jan 1, 2021	Cash	$630862
	Premium on bonds payable		$60862
	Bonds payable		$570,000
June 30, 2021	Interest Expense (630862*7%*6/12)	22080
	Premium on bonds payable	720
	Cash (570000*8%*6/12)		22800
Dec 31, 2021	Interest Expense (630862*7%*6/12)	22080
	Premium on bonds payable	720
	Cash (570000*8%*6/12)		22800