Bond Premium, Entries for Bonds Payable Transactions

Maui Blends, Inc. produces and sells organically grown coffee. On July 1, 2014, Maui Blends, Inc. issued $8,500,000 of 4-year, 13% bonds at a market (effective) interest rate of 12%, receiving cash of $8,763,916. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

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