Describe the journal entries required to record the issuance of bonds at par and the payment of bond interest. 

On January 1, a company issued 10-year, 10% bonds payable with a par value of $500,000, and received $442,647 in cash proceeds. 

The market rate of interest at the date of issuance was 12%. 

The bonds pay interest semiannually on July 1 and January 1. 

The issuer uses the straight-line method for amortization. 

Prepare the issuer's journal entry to record the first semiannual interest payment on July 1.

Answer rating: 100% (QA)

Answer Bond Interest Expense Discount on Bonds Payable July ... View the full answer