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512-9 Jernaling band transactions including retirement maturity McQueen and $10 ,31 year bed public make the Mondakepewa ne o
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Answer #1

Journal

January 1, 2018 Cash 100,000
Bonds payable 100,000
(To record bond issuance)
July 1, 2018 Interest expense 3,750
Cash 3,750
(To record semi annual interest payment)
December 31, 2027 Bonds payable 100,000
Cash 100,000
(To record retirement of bonds)

Semi annual interest payment = 100,000 x 7.5% x 6/12

= $3,750

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