Exercise 9-71 Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020, Harrington Corporation sold $425,000 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 Discount on Bonds Payable Bonds Payable Record issuance of bonds at discount Feedback Check My Work 1. When bonds issued, any premium or discount is recorded in a separate valuation account 2. Calculate the amount of the semiannual Interest payment. Previous Next > Check My Work 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 Cash Record interest expense Fedor Check My Work 3. When bonds are issued any premium or din count is recorded in a separate vlumon accomt. 4. Calculate the annual interest expense for 2020, Face 4. Any premium is amortized to interest expense over the life of the bond Feedback