Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31.(a) Prepare the general journal entry to record the issuance of the bonds on January 1.(b) Prepare the general journal entry to record the first interest payment on June 30.
What will be an ideal response?
| (a) | Cash | 3,000,000 | ? |
| ? | Bonds Payable | ? | 3,000,000 |
| (b) | Bond Interest Expense | 120,000 | ? |
| ? | Cash | ? | 120,000 |
| ? | ( $3,000,000 * 8% * 6/12 = $120,000) | ? | ? |
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