INTEREST PAYMENTS AND INTEREST EXPENSE FOR NOTE ISSUE USING TACCOUNTS. On January 1, 19x6, Harrington Corporation sold $100,000 of 10-year, 9% notes. The notes sold for $96,000 and pay interest semiannually.

REQUIRED:

1. Prepare the T-account entry to record the sale of the notes. 2. Calculate the amount of the semiannual cash payment for interest.

3. Prepare the T-account entry at June 30, 19x6, to recognize the payment of interest and interest expense.

4. Calculate the annual interest expense for 19x6.