On January 1, 2018, loren inc. issued $2,000,000, 9%, 5-year bonds dated January 1, 2018, at $1,920,000. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end.     Prepare all the journal entries that Lester Corporation would make related to this bond issue through January 1, 2019. Be sure to indicate the date on which the entries would be made.

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A: Requirement 1:

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A: Introduction: Interest amount: Interest is charged on the Principal amount. Interest is calculated…

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A: a.

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A:

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A: The Bonds are issued at premium when market rate is lower than the coupon rate of bonds.

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A:

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A:

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