00:02
Hello, so in this question, there are three parts.
00:06
In first part, we have to calculate the interest.
00:10
So let's start $1 ,550 ,000.
00:36
So it will come to $54 ,250.
00:55
So this is the interest answer of our first question.
01:04
In second part, we have to pass the journal entry.
01:29
So we are raising money through the bonds of $1 ,550 ,000.
01:37
So the entry will be cash or bank because we are going to receive the money in cash or bank and we'll have to create liability as well.
01:57
So we have to credit bonds payable by $1 ,550 ,000.
02:14
Then semi -annually on june 30, we have to book interest expense as well.
02:29
So interest expense account debit to $54 ,250.
02:47
Through this item, i have booked the expense.
02:56
Now i have to credit bank because when we pay interest, our bank balance will get reduced by $54 ,250.
03:11
So this is our interest booking and payment entry...