Required Intormation

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 $$680,000$ 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 $2$

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.

Journal entry worksheet

$1$

Record the payment of interest on June $30$ using the effective$-$interest

amortization method.

Note: Enter debits before credits.