Question.On April 1, 2023, King Company issued $400,000 of 5-year bonds. Interest is paid semi-annually on April 1 and October 1.Below is the full Amortization Table. Semi-Annual Interest PeriodInterest PaymentInterest ExpenseAmortizationCarrying Amount of BondsApr. 1, 2023 $418,444Oct. 1, 2023$8,0006,2771,723416,721Apr. 1, 20248,0006,2511,749414,972Oct. 1, 20248,0006,2251,775413,197Apr. 1, 20258,0006,1981,802411,395Oct. 1, 20258,0006,1711,829409,566Apr. 1, 20268,0006,1431,857407,709Oct. 1, 20268,0006,1161,884405,825Apr. 1, 20278,0006,0871,913403,912Oct. 1, 20278,0006,0591,941401,971Apr. 1, 20288,0006,0301,970400,001/400,000h) Prepare the journal entry for the payment of interest on April 1, 2024. Assume no reversing entries have been used.Show steps please.

The bonds are the debt instrument that is issued to raise money. These are generally issued by…

Answered: Question. On April 1, 2023, King…

Cornerstones of Financial Accounting

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ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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On April 1, 2023, King Company issued $400,000 of 5-year bonds. Interest is paid semi-annually on April 1 and October 1.

Below is the full Amortization Table.

Semi-Annual Interest Period	Interest Payment	Interest Expense	Amortization	Carrying Amount of Bonds
Apr. 1, 2023				$418,444
Oct. 1, 2023	$8,000	6,277	1,723	416,721
Apr. 1, 2024	8,000	6,251	1,749	414,972
Oct. 1, 2024	8,000	6,225	1,775	413,197
Apr. 1, 2025	8,000	6,198	1,802	411,395
Oct. 1, 2025	8,000	6,171	1,829	409,566
Apr. 1, 2026	8,000	6,143	1,857	407,709
Oct. 1, 2026	8,000	6,116	1,884	405,825
Apr. 1, 2027	8,000	6,087	1,913	403,912
Oct. 1, 2027	8,000	6,059	1,941	401,971
Apr. 1, 2028	8,000	6,030	1,970	400,001/400,000

h) Prepare the journal entry for the payment of interest on April 1, 2024. Assume no reversing entries have been used.

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