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Record the second semiannual interest payment

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Q1. If the market interest rate is 7%, the bonds will issue at $530,000. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.

1. Record the bond issue.

Debit Cash - 530,000

Credit Bonds payable - 530,000

2. Record the first semiannual interest payment.

Debit interest expense - 18,550

Credit Cash - 18,550

3. Record the second aemiannual interest payment.

Debit interest Expense 18,550

Credit Cash - 18,550

I understand the first part, but i dont understand how to get the numbers on this part here.

Q2. If the market interest rate is 8%, the bonds will issue at $477,549. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.

1. Record the bond issue.

2. Record the first semiannual interest payment.

3. Record the second semiannual interest payment.

Reference no: EM131732157

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