On December 31, 2011, Harrington Corporation sold $425,000 of 15-year, 11 percent bonds. The bonds sold for

Question:

On December 31, 2011, Harrington sold $425,000 of 15-year, 11 percent bonds. The bonds sold for $395,000 and pay interest semiannually on June 30 and December 31.

Required:
1. Prepare the journal entry to record the sale of the bonds.
2. Calculate the amount of the semiannual interest payment.
3. Prepare the entry at June 30, 2012, to recognize the payment of interest and interest expense.
4. Calculate the annual interest expense for 2012. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...