Ask Me Help Desk - Issued 3,000, 8%, 5-year, $1,000 bonds dated January 1, 2011, at face value

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- - Issued 3,000, 8%, 5-year, $1,000 bonds dated January 1, 2011, at face value (https://www.askmehelpdesk.com/showthread.php?t=525965)

issued 3,000, 8%, 5-year, $1,000 bonds dated January 1, 2011, at face value

I need to record the journal entry for interest paid on July 1 and record interest paid on dec 31. I am stuck

You are to pay 8% per year, with 2 payments - one on July 1 and one on Dec 31.

A $1000 bond at 8% pays $80 ($1000 * .08) per year. Multiply that by 3,000 to get $240,000. If paid each 6 months, it will be $120,000 each 6 months.

The entry is a debit to Interest Expense and a credit to Cash.

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