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Henge Inc. is planning to purchase $357,000 worth of 6-year bonds issued by William Company, a publicly traded company on January 1, 2020. The interest
Henge Inc. is planning to purchase $357,000 worth of 6-year bonds issued by William Company, a publicly traded company on January 1, 2020. The interest rate of the bonds is 4% annually, payments are made semi-annually on June 30 and December 31 every year. Henge Inc. has a December 31 year-end and plans to hold the bonds until maturity. Required Prepare journal entries for the bonds' acquisition, the first interest payment and retirement of the bonds on January 1, 2026. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Date Account Title and Explanation Jan 1, 2020 Jun 30, 2020 To record purchase of bonds at par Jan 1, 2026 To record cash receipt of interest To record receipt of cash at maturity Debit Credit 0
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