Part $2$ of $3$

Required information

E$10-9($Algo$)($Chapter Supplement$)$ Recording and Reporting a Bond Issued at a Discount $($without Discount Account$)$ LO$10-4$

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

Denzel Corporation is planning to issue bonds with a face value of $$800,000$ and a coupon rate of $7\mathrm{.}5$ percent. The bonds mature in $8$ years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on January $1$ of this year. Denzel uses the effective$-$interest amortization method and does not use a discount account. Assume an annual market rate of interest of $8\mathrm{.}5$ percent. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

NOte: Use appropriate factor$($s$)$ from the tables provided.

E$10-9$ Part $2$

$2.$ Prepare the journal entry to record the interest payment on June $30$ of this year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answers to whole dollars.

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$\backslash$table$[[$No$,$Date,,General Journal,Debit$],[1,$June $30,$Interest expense,Credit,$],[,,$Bonds payable,,$],[,,$Cash,,$]]$