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On January 1, 2022, Cheyenne Corporation issued $1,640,000 face value, 5%, 10-year bonds at $1,519,294. This price resulted in an effective-interest rate of 6% on
On January 1, 2022, Cheyenne Corporation issued $1,640,000 face value, 5%, 10-year bonds at $1,519,294. This price resulted in an effective-interest rate of 6% on the bonds. Cheyenne uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest janurary 1.
Prepare the journal Entry to record the accrual of interest and the amortization of the discount on December 31, 2022.
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