Amortization of a bond discount and premium On September 1, 2015, ABC company issued $80 million in 20-year,10 percent bond payable. Interest is payable semiannually on March 1 and September 1. Bond discounts and premiums are amortized at each interest payment date and at year-end. The companys fiscal year-end on December 31.

Instructions

1. Make the necessary adjusting entries at December 31, 2015, and the journal entry to record the payment of bond interest on march 1,2016, under each of the following assumptions:

1: The bonds were issued at 98

2: The bonds were issued at 101

This is the complete question, ignore the instruction & Prepare the following entries:

a) issuance entry

b)Entry of first interest payment

c) Adjusting entry for accrued interest

d) Entry of Next interest payment