Prepare the journal entry to record the sale of bonds

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Reference no: EM131287240

On December 31, 2011, Harrington Corporation sold $90,000 of 15-year, 11 percent bonds. The bonds sold for $86,000 and pay interest semiannually on June 30 and December 31.

1 - Prepare the journal entry to record the sale of bonds. (Show all steps)

2. Calculate the amount of semiannual interest payment. Round your answer to the nearest whole dollar if required. (Show all steps)

3. Prepare the entry at June 30, 2012, to recognize the payment of interest and interest expense. Round your answer to the nearest whole dollar if required. (Show all steps)

4. Calculate the annual interest expense for 2012. Round your answer to the nearest whole dollar, if required. (Show all steps)

Reference no: EM131287240

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