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[The following information applies to the questions displayed below.] Alaskan Frontier provides rail and bus tours of Alaska. Alaska Frontier issues $450,000 of 7% bonds

[The following information applies to the questions displayed below.]

Alaskan Frontier provides rail and bus tours of Alaska. Alaska Frontier issues $450,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $419,423.

2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.)

Journal entry worksheet

  • Record the bond issue.

Note: Enter debits before credits.

Journal entry worksheet

  • Record the first semiannual interest payment.

Note: Enter debits before credits.

Date General Journal Debit Credit
June 30, 2021

Journal entry worksheet

  • Record the second semiannual interest payment.

Note: Enter debits before credits.

Date General Journal Debit Credit
December 31, 2021
Date General Journal Debit Credit
January 01, 2021

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