Duval Co. issues four-year bonds with a $108,000 par value on
January 1, 2019, at a price of $103,920. The annual contract rate
is 6%, and interest is paid semiannually on June 30 and December
31.
Prepare journal entries to record the first two interest
payments.
(Round your answers to the nearest dollar
amount.)
- Record the interest payment and discount amortization on June
30, 2019.
Note: Enter debits before credits.
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| Date |
General Journal |
Debit |
Credit |
| June 30, 2019 |
Bond interest expense |
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- Record the interest payment and discount amortization on
December 31, 2019.
Note: Enter debits before credits.
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| Date |
General Journal |
Debit |
Credit |
| December 31, 2019 |
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Prepare the journal entry for maturity of the bonds on December
31, 2022 (assume semiannual interest is already recorded).
- Record the entry for maturity of the bonds on December 31, 2022
(assume semiannual interest is already recorded).
Note: Enter debits before credits.
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| Date |
General Journal |
Debit |
Credit |
| Dec 31, 2022 |
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