$200,000 of 6%,25-year bonds were sold for $190,000 on January 1.The bonds require semiannual interest payments on June 30 and December 31.The entry to record the June 30 interest payment on the bonds would be to:

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The company sold the bonds at a discount of $10,000 ($200,000 - $190,000). This discount represents the difference between the face value of the bonds ($200,000) and the amount the company received for them ($190,000).

When the bonds were issued, the company recorded a Discount on bonds payable account to reflect the discount. This account has a debit balance, which means that it reduces the carrying amount of the bonds ($200,000 - $10,000 = $190,000).

The semiannual interest payment is calculated as follows:

$200,000 x 6% x 6/12 = $6,000

Therefore, the entry to record the June 30 interest payment would be:

Debit Interest Expense $6,200
Credit Discount on bonds payable $200 
Credit Cash $6,000

The Interest Expense account is debited for the full interest payment of $6,200. The Discount on bonds payable account is credited for the portion of the discount that is amortized (i.e., the discount allocated to the current interest payment period). The Cash account is credited for the cash payment of $6,000.

$200,000 of 6%,25-Year Bonds Were Sold for $190,000 on January