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E13.5 ( LO 1 (Entries for Bond Transactions- Effective-Interest) Assume the same information as in E13.4, except that Celine Dion Company uses the effective-interest
E13.5 (
LO 1
\ (Entries for Bond Transactions-\ Effective-Interest) Assume the same information as in E13.4, except that Celine Dion Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of
9.7705%
.\ Instructions\ Prepare the journal entries to record the following. (Round to the nearest dollar.)\ a. The issuance of the bonds.\ b. The payment of interest and related amortization on July 1 , 2025.\ c. The accrual of interest and the related amortization on December 31, 2025.
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