Vaughn Limited issued $4,500,000 of 10-year, 6% bonds on January 1, 2021, when the market interest rate was 7%. Vaughn received $4,180,239 when selling the bonds. Interest is payable semi-annually on July 1 and January 1. Vaughn has a December 31 year end.

b) Record the payment of interest on July 1, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

(a) Your answer is correct. Record the issue of the bonds on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash $4,180,239 Bonds Payable $4,180,239 (b) Your answer is partially correct. Record the payment of interest on July 1, 2021. (Round answers to decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entries before credit entries.) Date Account Titles and Explanation Debit Credit July 1 Interest Expense 157,500 Bonds Payable 16,500 Cash 141.000 e Textbook and Media