Question
SunlandCorporation issued $3.36million of 7-year,3% bonds dated January 1, 2021, for $2,967,185. The market interest rate when the bonds were issued was5%. Interest is payable
SunlandCorporation issued $3.36million of 7-year,3% bonds dated January 1, 2021, for $2,967,185. The market interest rate when the bonds were issued was5%. Interest is payable semi-annually on January 1 and July 1.Sunlandhas a December 31 year end.
Prepare a amortization schedule for the first three interest payments.
Prepare the journal entry to record the first interest payment on July 1, 2021.
Prepare the adjusting journal entry on December 31, 2021, to accrue the interest expense.
Prepare the journal entry for the payment of interest on January 1, 2022.
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Management Accounting Information for creating and managing value
Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne
8th edition
9781760420413 , 978-1760420406
