Exercise $9-71($Algorithmic$)$

Interest Payments and Interest Expense for Bonds $($Straight Line$)$

On January $1,2020,$ Harrington Corporation sold $$100,000$ of $15-$year, $11\%$ bonds. The bonds sold for $$96,000$ and pay interest semiannually on June $30$ and December $31.$

Required:

Prepare the journal entry to record the sale of the bonds.

$2020$ Jan. $31$

$$

$$

$$

$$

Record issuance of bonds at discount

Calculate the amount of the cash semiannual interest payment. Round your answer to the nearest whole dollar, if required.

$ $$

Prepare the entry at June $30,2020,$ to recognize the payment of interest and interest expense. Round your answers to the nearest whole dollar, if required.

$2020$ June $30$

$$

$$

$$

$q,$

Record interest expense

Calculate the annual interest expense for $2020.$ Round your answer to the nearest whole dollar, if required.

$ $$