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on July 1 2018, dingo corporation issues $1,000,000 of 5 year bonds, 4% bonds that pay interest semi-annually. the selling price was for $914,698 when
on July 1 2018, dingo corporation issues $1,000,000 of 5 year bonds, 4% bonds that pay interest semi-annually. the selling price was for $914,698 when the market rate of interest was 6%. Dingo corporation uses the effective-interest method of amortization. interest is paid each june 30 and december 31. the entry to record the first semi-annual interest payment on december 31 2018 will include a:
a) debit to interest expense of $27,441
b) credit to bonds payable for $27,441
c)credit to interest expense for $20,000
d) credit to bonds payable for $20,000
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