On January 1, 2019, Mullens Sales issues $10,000 in bonds for $9,400. The bonds are five-year bonds with a stated rate of 4% and pay semiannual interest on June 30 and December 31. Mullens Sales uses the straight-line method to amortize bond discount. Prepare the journal entry for the first interest payment on June 30, 2019. Omit explanation

On January 1, 2019, Mullens Sales issues $10,000 in bonds for $9,400. The bonds are five-year bonds with a stated rate of 4% and pay semiannual interest on June 30 and December 31. Mullens Sales uses the straight-line method to amortize bond discount. Prepare the journal entry for the first interest payment on June 30, 2019. Omit explanation

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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