Allied Corp., issued 8 percent, five-year bonds payable with a maturity value of $50,000 at a price

Question:

Allied Corp., issued 8 percent, five-year bonds payable with a maturity value of $50,000 at a price of $48,200 on January 1, 2016. Journalize the following transactions for Allied Corp. Include an explanation for each entry.

a. Issuance of the bond payable on January 1, 2016.

b. Payment of semiannual interest and amortization of bond discount on July 1, 2016.

Use the straight-line method to amortize the discount?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...