ACC 201

On December 31, 2016, when the market interest rate is 16%, a company issues $650,000 of 14.25%, 10-year bonds for $594, 446. The company uses the effective interest amortization method. (Round amounts to the nearest whole dollar. Journal entry explanations appear on the last row of the tables.) Prepare the entry on the semiannual interest date of June 30, 2017. Prepare the entry on the semiannual interest date of December 31, 2017