Please help to find out the amounts of Interest Expense and Discount&debt issue

Question

Please help to find out the amounts of Interest Expense and Discount&debt issue costs. Thank you!

Cupola Fan Corporation issued 8%, $440,000, 10-year bonds for $421,000 on June 30, 2018, Debt issue costs were $1,900. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $425,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs

Explanation / Answer

Journal entry :

Date General journal Debit credit December 31,2018 Interest expense 11645 Discount on debt issue cost (20900/20) 1045 Cash 17600

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