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Swifty Inc is contemplating issuing 80000 5 year bond on January 1 2018 paying 5 interest on a semiannual basis every January 1 and July

Swifty Inc is contemplating issuing 80000 5 year bond on January 1 2018 paying 5 interest on a semiannual basis every January 1 and July 1 Prepare the first year journal entries for the bond issue and interest expense assuming that the company uses straightline amortization a market interest rate of 4 and has a yearend of December 31 2018

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Journal entry Date Particulars Amt Dr Amt Cr Jan 1 cash 720150 2020 Premium on bond payable 6r015... blur-text-image

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