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Appendix 2 EX 14-24 Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year Shunda Corportion issued $22,000,000 of
Appendix 2 EX 14-24 Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year Shunda Corportion issued $22,000,000 of five-year, 9 % bonds at a market (effective terest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. S Corporation's fiscal year begins on January 1. The company uses the interest method a. Journalize the entries to record the following: 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. b. Determine the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for $23,829,684 rather than for the face amount of $22,000,000. Appendix 1 and Appendix 2 EX 14-25 Compute bond proceeds, amortizing premium by interest method, and interest expense
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