Darla's Cookie Emporium borrowed money by issuing $200,000 of bonds at 96 on January 1. The bonds pay interest on January 1 and July 1. The stated rate of interest is 5% and the bonds mature in 10 years. Any discount or premium is amortized using the straight-line method. Journalize the entries to record the:
1. issuance of the bonds
2. interest paid on the bonds every six months.
3. payment of the bond at maturity.

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The Answer of Darla's Cookie Emporium borrowed money by issuing $200,000 of bonds at 96 on January 1. The bonds pay interest on January 1 and July 1. The stated rate of interest is 5% and the bonds mature in 10 years. Any discount or premium is amortized using the straight-line method. Journalize the entries to record the:
1. issuance of the bonds
2. interest paid on the bonds every six months.
3. payment of the bond at maturity.

Darla's Cookie Emporium Borrowed Money by Issuing $200,000 of Bonds