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TheWindyCityCompanyissued$500,000of12%bondsonJanuary1,2016.Thebondsweresoldfor$549,493,and theywereexpectedtoyield10%interestcompoundedsemiannually.TheinterestdatesareJune30andDecember 31.ThematuritydateofthebondsisDecember31,2022. Required: a. Preparethejournalentrytorecordtheissuanceofthebonds. b. Usingtheeffectiveinterestmethod,preparethejournalentriestorecordthefirsttwo interestpayments. **PLEASE SHOW ALL WORK & CALCULATIONS**
TheWindyCityCompanyissued$500,000of12%bondsonJanuary1,2016.Thebondsweresoldfor$549,493,and theywereexpectedtoyield10%interestcompoundedsemiannually.TheinterestdatesareJune30andDecember 31.ThematuritydateofthebondsisDecember31,2022.
Required:
a. Preparethejournalentrytorecordtheissuanceofthebonds.
b. Usingtheeffectiveinterestmethod,preparethejournalentriestorecordthefirsttwo interestpayments.
**PLEASE SHOW ALL WORK & CALCULATIONS**
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