On January $1,$ InnoSolutions, Inc. issued $$240,000$ in bonds at face value. The bonds have a stated interest rate of $5$ percent. The bonds mature in ten years and pay interest once per year on December $31.$

Required:

Prepare the journal entry to record the bond issuance. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

Record the entry for issuance of bond.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Prepare the journal entry to record the inferest payment on December $31.$ Assume no interest was accrued earlier in the year. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$2$

Record the interest payment on December $31.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,-,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Ch $10$& $11)($i

$3.$ Assume the bonds were retired immediately after the first interest payment at a quoted price of $103.$ Prepare the journal entry to record the early retirement of the bonds. $($Iffno entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

Record the early retirement of the bonds.

Note: Enter debits before credits.