Essay On Bond Payable11,520Bond Interest Expense

H&l Pines Journal Entries H&L PINESJOURNAL ENTRIESEntryTransactionDebitCredit6.5% Bonds Payable1.Cash6,364,8646.5% Bond Payable6,364,864Face Value: $1,000/ bond × 6,500 bonds = $6,500,000n = 5 years × 2 payments/year = 10i = 7% ÷ 2 = 3.5%PV Principal: $6,500,000 × 0.70892 = $4,607,980PV Interest: ($6,500,000 × 6.5% × 6/12) × 8.31661 = $1,756,884PV Bond: $4,607,980 + $1,756,884 = $6,364,8642.Bond interest expense222,770Cash211,2506.5% Bond Payable11,520Bond interest expense: $6,364,864 × 7% × 6/12.