On April 1, 2011, Morimoto Corporation issued $8,000,000 in 8.5 percent, five-year bonds at 98. The semiannual

Question:

On April 1, 2011, Morimoto Corporation issued $8,000,000 in 8.5 percent, five-year bonds at 98. The semiannual interest payment dates are April 1 and October 1. Prepare journal entries for the issue of the bonds by Morimoto on April 1, 2011, and the first two interest payments on October 1, 2011, and April 1, 2012. Use the straight-line method and ignore year-end accruals.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...