Bond Issue between Interest Dates

You may use the attached video to help you complete this activity. Dawn Corporation sold $400,000 of 9 percent, 10-year bonds for face value on September 1, 2014. The issue date of the bonds was May 1, 2014. The company's fiscal year ends on December 31, and this is its only bond issue. Prepare the journal entry to record the sale of the bonds on September 1 and the first semiannual interest payment on November 1, 2014. For a compound transaction, if an amount box does not require an entry, leave it blank.What is the bond interest expense for the year ended December 31, 2014?