Current Attempt in Progress

Carla Vista Organics Ltd$.$ has a number of commercial greenhouse operations in British Columbia's Fraser Valley. To finance the

additional real estate and greenhouses necessary to meet the increasing demand for the company's products, the company decided to

issue bonds. On January $1,$ it issued five$-$year, semi$-$annual bonds with a face value of $$84,000,000.$ The contract rate on the bonds was

$4\mathrm{.}5\%$ and the bonds were issued at $95\mathrm{.}7$ to yield $5\mathrm{.}5\%.$ Interest payments are to be made each June $30$ and December $31.$Provide the journal entries to record the first two interest payments. $($Credit account titles are automatically indented when amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers

to $0$ decimal places, e$.$g$.125.$ List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

notes payable

$($To record first interest payment$)$

interest expense

Notes Payable

$($To record second interest payment$)$