Textbook Problem

Cornerstone Exercise 9-26 Debt Issued at Par

On January 1, 2019, Brock & Co. issued S600,000 of bonds payable at par. The bonds have a 9% stated rate, pay interest on March 31, June 30, September 30, and December 31, and mature on December 31, 2019,

Required:

Prepare the journal entries to record the interest payment on June 30, 2019.

Use the following information for Cornerstone Exercises 9-27 and 9-28:

On January 1, 2020, Drew Company issued S350,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31.