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Problem 14-7AB Effectlve Interest: Amortization of bond discount LO P1, P6 Legacy issues S660.000 of 5.5%, four-year bonds dated January 1, 2013, that pay interest
Problem 14-7AB Effectlve Interest: Amortization of bond discount LO P1, P6 Legacy issues S660.000 of 5.5%, four-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31 . They are issued at $604,461 and their market rate is 8% at the issue date 1. Prepare the January 1, 2013, journal entry to record the bonds issuance. No /1 Jan. 1, 2013 Cash 604.461 660,000
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