On January 1, 2020, Barrymore Ltd. issued $200,000, 8%, 10-year bonds, when the market interest rate was 10%. Therefore, the bonds were trading at $175,076, Interest is payable semi-annually on July 1 and January 1. The company has a calendar year end.
Instructions
a) Record the issue of the bonds.
b) Record the first interest payment on July 1, 2020. Round to nearest dollar.

Question

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The Answer of On January 1, 2020, Barrymore Ltd. issued $200,000, 8%, 10-year bonds, when the market interest rate was 10%. Therefore, the bonds were trading at $175,076, Interest is payable semi-annually on July 1 and January 1. The company has a calendar year end.
Instructions
a) Record the issue of the bonds.
b) Record the first interest payment on July 1, 2020. Round to nearest dollar.