Question
On January 1, 2021, Mania Enterprises issued 12% bonds dated January 1, 2021, with a face amount of $20.5 million. The bonds mature in 2030
On January 1, 2021, Mania Enterprises issued 12% bonds dated January 1, 2021, with a face amount of $20.5 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the nearest whole dollar.) Required: 4. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method.
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