Interest Payments and Interest Expense for Bonds (Straight Line)}

On December 31, 2018, Harrington Corporation sold \(\$ 425,000\) of 15 -year, \(11 \%\) bonds. The bonds sold for \(\$ 395,000\) and pay interest semiannually on June 30 and December 31. The company uses the straight-line method of amortization.

\section*{Required:}
1. Prepare the journal entry to record the sale of the bonds.
2. Calculate the amount of the semiannual interest payment.
3. Prepare the entry at June 30,2019 , to recognize the payment of interest and interest expense.
4. Calculate the annual interest expense for 2019 .
OBJECTIVE 4 Exercise