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

Swiss Inc. sold $20-$year bonds with a total face amount of $$425,000$ and a stated rate of $7\mathrm{.}5\%.$ The bonds sold for $$449,000$ on January $1,2024,$ and pay interest semiannually on June $30$ and December $31.$

Required:

Prepare the entry to recognize the sale of the bonds. If an amount box does not require an entry, leave it blank.

$2024$ Jan. $1$

Premium on Bonds Payable

Bonds Payable

$($Record issuance of bonds at premium.$)$

$2.$ Determine the amount of the semiannual interest payment required by the bonds. Round your answer to the nearest whole dollar and use the same in subsequent calculations.

$

$3.$ Prepare the journal entry made by Swiss at June $30,2024,$ to recognize the interest expense and an interest payment. If an amount box does not require an entry, leave it blank.

$2024$ June $30$

$($Record interest expense.$)$