Answer:
$5,320
Explanation:
the journal entry to record the issuance of the bonds
January 1
Dr Cash 67,900
Dr Discount on bonds payable 2,100
Cr Bonds payable 70,000
the journal entry to record the first and second coupon payments
June 30 and December 31, first and second coupon payment
Dr Interest expense 2,660
Cr Cash 2,450
Cr Discount on bonds payable 210
Amortization of bonds payable = $2,100 / 10 coupons = $210 per coupon
total interest expense for the year = $2,660 x 2 = $5,320
