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ABC Company issued $200,000 face (par) value bonds on January 1, 2019 for $159,741 in proceeds, with semiannual interest payments to be made on June
ABC Company issued $200,000 face (par) value bonds on January 1, 2019 for $159,741 in proceeds, with semiannual interest payments to be made on June 30 and December 31 at a stated (coupon) rate of 10%. The bonds were scheduled to mature five years after they were issued. Required: 1. Prepare the journal entry to record the bond issuance and the first two interest payments assuming straight-line amortization of any discount or premium. 2. Is the market rate of interest higher or lower than the stated rate of 10%
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