Journal entry worksheet

Record the collection of interest on bond.

Journal entry worksheet

Note: Enter debits before credits.On January $1,2023,$ Liu Corporation paid $$254,024$ to acquire bonds of Singh Investment Corp with a par value of $$252,000.$ The annual contract rate on the bonds is $7\mathrm{.}0\%$ and interest is paid semiannually on June $30$ and December $31.$ The bonds mature after three years. The market rate of interest was $6\mathrm{.}7\%.$ Liu Corporation intends to hold the bonds until maturity.