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explain clearly please Delish Company issued $500,000,10%,5-year bonds on January 1, 2022 for $480,000. The bonds were sold for $470,000 to yield an effective-interest rate
explain clearly please
Delish Company issued $500,000,10%,5-year bonds on January 1, 2022 for $480,000. The bonds were sold for $470,000 to yield an effective-interest rate of 12%. Interest is payable annually on January 1 . The company uses the straight-line method to amortize any bond premium or discount. Instructions: (a) Did these bonds issue at a Premium or at a Discount? (b) Prepare the journal entry to record the issuance of the bonds. (c) Calculate the amount of the first interest payment. (d) Calculate the amount of interest expense Delish would record on Dec. 31, 2022 . (c) Step by Step Solution
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