Question

Check my work Requieu duon [The following information applies to the questions displayed below.) On January 1, 2021, Splash City issues $470,000 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 8%, the bonds will issue at $516,513. 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 final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 3 Record the bond issue. < Prev 7 of 13 I Next > earch

Answer 1

January 1,2021	Cash	516513
	Bonds payable		470000
	Premium on Bonds payable		46513
June 30,2021	Interest expense	20661		=516513*8%/2
	Premium on Bonds payable	489
	Cash		21150	=470000*9%/2
December 31,2021	Interest expense	20641		=(516513-489)*8%/2
	Premium on Bonds payable	509
	Cash		21150	=470000*9%/2