eBook Exercise 9-71 interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020, Harrington Corporation sold 5425,000 of 15-year, 11% bonds. The bonds sold for $395,000 and pay interest semiannually on June 30 and December 31. Required: 1. Prepare the journal entry to record the sale of the bonds. 2020 Jan. 1 Cash 395,000 Discount on Bonds Payable Bonds Payable Record issuance of bands at discount 19,000 425.000 Che W 1. When bonds are issued, any premium or discount is recorded in a separate valuation account 2. Calculate the amount of the semiannual interest payment. 23,375 X 20 a D 10:41 PL 4/1/200 C 396,000 X 3. Prepare the entry at June 30, 2020, to recognize the payment of interest and interest expense. 2020 June 30 Interest Expense Discount on Bonds Payable 1,000 Cash 395,000 X Record interest expense Feedback 7 Check My Work 3. When bonds are issued, any premium or discount is recorded in a separate valuation account.