Question

Required Information [The following information applies to the questions displayed below.) Legacy Issues $740,000 of 7.5%, four-year bonds dated January 1, 2019, thot pay Interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the interest payment and amortization on June 30. Note: Enter debits before credits. General Journal Debit Credit Date June 30 Bond interest expense Discount on bonds payable Cash 27.750 Record entry Clear entry View general journal

Answer 1

Journal entry

date	account and explanation	Debit	Credit
June 30	Interest expense (680186*10%*6/12)	34009
	Discount on bonds payable		6259
	Cash (740000*7.5%*6/12)		27750
	(To record interest)
Dec 31	Interest expense (680186+6259)*10%*6/12	34322
	Discount on bonds payable		6572
	Cash		27750
	(TO record interest)