Bond Interest Payments and Amortization

Instructions

Chart of Accounts

Instructions

Bangles Corporation issued $5-$year, $11\%$ bonds with a face value of $$300,000$ on April $1,2019,$ for $$288,000.$ Interest is paid semiannually at October $1$ and April $1.$

Required:

Prepare the journal entries to record the issuance on April $1,2019,$ and the first interest payment on October $1,2019.$ Use the straight$-$line method to amortize the discount.