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

On January $1,$ 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. If an amount box does not require an entry, leave it blank.

Jan. $31$

Record issuance of bonds at discount

Calculate the amount of the semiannual interest payment. Round your answer to the nearest whole dollar and use the same in subsequent calculations.

$

Prepare the entry for the first interest payment on June $30$ to recognize the payment of interest and interest expense. If an amount box does not require an entry, leave it blank.

June $30$

Record interest expense

Calculate the annual interest expense for the first year.

$