A company issued $300,000 of 20-year,8 percent bonds at 96.If interest is paid semi-annually,the entry to record the amount of bond interest expense (assuming the straight-line method of amortization)on any interest date is

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The bond was issued at 96, meaning it was sold for 96% of its face value, resulting in a discount. The annual interest is $24,000 (8% of $300,000), or $12,000 semi-annually. The discount of $12,000 ($300,000 - $288,000) is amortized over 40 periods (20 years x 2), resulting in $300 per period. Therefore, the bond interest expense is $12,300 ($12,000 + $300).

A Company Issued $300,000 of 20-Year,8 Percent Bonds at 96