Interest Payments and Interest Expense for Bonds (Straight Line)

On January 1, 2020, Harrington Corporation sold $104,000 of 15-year, 11% bonds. The bonds sold for $100,000 and pay interest semiannually on June 30 and December 31.

Required:

Question Content Area

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

2020 Jan. 31	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Record issuance of bonds at discount

Question Content Area

2. Calculate the amount of the cash semiannual interest payment. Round your answer to the nearest whole dollar, if required. $fill in the blank c4abb001501b036_1

Question Content Area

3. 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	CashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Record interest expense

Question Content Area

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