Bond Issuance$$Discount$/$Premium

Brunson Company issues $10\%,15-$year bonds with a par value of $$240,000$ and

semiannual interest payments. On the issue date, the annual market rate for these

bonds is $8\%,$ which implies a selling price of $117.$ Prepare the journal entry for the

issuance of these bonds. Assume the bonds are issued for cash on January $2,2021.$

A$.$ Indicate whether the bond is sold at a discount or premium. Calculate the

discount$/$premium amount.

B$.$ Prepare the journal entry for the issuance of the bonds. Assume the bonds are

issued for cash on January $2,2021.$

C$.$ Calculate total interest expense for this bond.