Question
On January 1, a business issues $100,000 face value, 5 year, 10% contract rate bonds dated January 1. Interest is payable ANNUALLY each December 31.
On January 1, a business issues $100,000 face value, 5 year, 10% contract rate bonds dated January 1. Interest is payable ANNUALLY each December 31. The bonds were issued at a discount of $7,210 to reflect a market interest rate of 12%.
Prepare the necessary journal entries to record total interest expense for the FIRST interest period.
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Auditing
Authors: Alan Millichamp, John Taylor
11th Edition
1473749301, 978-1473749306
