INTEREST PAYMENTS AND INTEREST EXPENSE FOR NOTES. Klamath Manufacturing sold 10-year notes with a total face amount of $400,000 and a stated rate of 8.4%. The notes sold for $424,000 on January 1, 19x2 and they pay interest semiannually.

REQUIRED:

1. Prepare the entry to recognize the sale of the notes.

2. Determine the amount of the semiannual interest payment required by the notes.

3. Prepare the journal entry made by Klamath at June 30, 19x2, to recognize the interest expense and an interest payment.

4, Determine the amount of interest expense for 19x2.