Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2011, Daggett Company issued $750,000 of ten-year, 9% bonds payable for $700,353, yielding an effective interest rate of 10%. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, 2012, and (c) the semiannual interest payment and discount amortization on December 31, 2012. Round amounts to the nearest dollar.

Drop box options:

General Journal Date Description a.) Dec. 31 Cash To record issuance of bonds. Jun.30 Cash To record semiannual interest payment and discount amortization. c.) Dec.31 Cash To record semiannual interest payment. Debit Credit