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Instructions Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued $84,100,000 of 10-year, 8% bonds at a market (effective) interest
Instructions
Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued $84,100,000 of 10-year, 8% bonds at a market (effective) interest rate of 6%, receiving cash of $96,612,297. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. | Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* | ||||
2. | Journalize the entries to record the following:*
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3. | Determine the total interest expense for 2016.
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