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Make the general journal entry to record interest payments

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Question - On January 1, 2020, Logan Corporation sold $600,000 of 8% bonds at $570,000. The bonds are due on January 1, 2025 and pay interest semiannually every July 1 and January 1. The bonds were sold to yield a 10% effective rate. Logan closes its books annually on December 31.

Required -

(a) How do make the general journal entry to record the sale of the bonds.

(b) Not sure how to make the general journal entry to record the interest payment on July 1, 2020, assuming that Logan uses the effective interest method to amortize the bond discount.

(c) Can you please explain general journal entry to record the interest accrual on December 31, 2020, assuming that Logan uses the effective interest method to amortize the bond discount.

Reference no: EM132741648

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