Answered: ournalize the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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I figured out that the interest expense amount should be 444,500 and the discount amount should be 339,500 but it keeps saying it's wrong on my homework. I don't understand what I'm doing wrong?

Here's the question.

Discount Amortization

On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105,000 ($3,500,000 × 6% × ½), receiving cash of $3,350,000.

Journalize the first interest payment and the amortization of the related bond discount. If an amount box does not require an entry, leave it blank.

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