Question
on November 1 2012, fields corporation issued 800 000 worth of ten-year 9 percent bonds. the semi-annual interest dates are November 1 and may 1.
on November 1 2012, fields corporation issued 800 000 worth of ten-year 9 percent bonds. the semi-annual interest dates are November 1 and may 1. because the market interest rate of similar investments was 8.5 percent the bonds were issued at a price of 103. ignoring year end accruals prepare entries in journal form without explanations to record the bond issue on November 1, 2012, and the payments of interest and amortization of premium on May 1 and November 1, 2013. use the effective interest method of amortization. round to the nearest dollar.
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