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A bond was issued at the beginning of the accounting year (01/01/2018) for $8,000. The bond has a par value of $10,000 and coupon rate
A bond was issued at the beginning of the accounting year (01/01/2018) for $8,000. The bond has a par value of $10,000 and coupon rate of 10% paid semiannually. The yield to maturity on the bond is 13.74% per year compounded semiannually. Make the journal entries on 07/01 (end of first accounting period) and 12/31 (end of second accounting period) to record bond amortization and interest expense based on effective interest method. To receive credit, answers are to the nearest dollar with comma separators and no decimal points ( 10000.49 should be reported as 10,000 and 10000.51 as 10,001 ). 07/01/2018 Interest Expense UABD Cash 12/31/2018 Interest Expense
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