On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Respuesta :

Solution:

Jan 01, 2018

Cash                                        $452,737

bonds payable                        $452,737

June 30,2018

Interest expense                      13,655

bonds payable                          1055

cash                                          12600

Dec 31,2018

Interest expense                     13,692

bonds                                       12600