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On January 19, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondholders with a 10% yield.
On January 19, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondholders with a 10% yield. The bonds dated January 15, 2018 and mature January 19, 2023, with interest payable December 31 of each year. Instructions: a) Prepare the journal entry at the date of the bond issuance. (5 marks) b) Prepare a schedule of interest expense and bond amortization for 2018 - 2023. (20 marks)
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