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Question 1: Interest has accrued at 7% on the long-term notes payable since July 1, 2018. The next six month interest payment at 6.9% on the bond is due on March 1, 2019. The original discount on bonds payable is $15,800. No portion of the discount has been amortized for any part of 2018; the bonds are 10-yr maturity (Use Straight-line). Notes Payable (LT) 1/1 Bal $43,000 7/1 Increased Mortgage CR $70,000 7/1 Bal $ $113,000 Discount on Bonds Payable 1/1 Bal $6400 and amortization of discount using-line. What is the adjusting journal entry for this problem?
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