Exercise 9-71 (Algorithmic)Interest Payments and Interest Expense for Bonds (Straight Line)On January 1, 2020, Harrington Corporation sold $100,000 of 15-year, 11% bonds. The bonds sold for $96,000 and pay interestsemiannually on June 30 and December 31.Required:1. Prepare the journal entry to record the sale of the bonds.2020 Jan. 31Record issuance of bonds at discount2. Calculate the amount of the cash semiannual interest payment. Round your answer to the nearest whole dollar, if required.3. Prepare the entry at June 30, 2020, to recognize the payment of interest and interest expense. Round your answers to thenearest whole dollar, if required.2020 June 30Record interest expense4. Calculate the annual interest expense for 2020. Round your answer to the nearest whole dollar, if required.

Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020, Harrington Corporation sold $100,000 of 15-year, 11% bonds. The bonds sold for $96,000 and pay interest semiannually on June 30 and December 31.

Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020, Harrington Corporation sold $100,000 of 15-year, 11% bonds. The bonds sold for $96,000 and pay interest semiannually on June 30 and December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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