For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bonds were sold

Question:

For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bonds were sold on January 1, 2020, for $420,000.

Required:
1. Prepare the entry to recognize the issuance of the bonds on January 1, 2020.
2. Prepare the entry to recognize the first interest payment on June 30, 2020.
3. Determine what interest expense for this bond issue Dingle will report in its 2021 income statement.
4. Indicate how these bonds will appear in Dingle's December 31, 2023 balance sheet.

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