On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds at a market interest rate of 8%, receiving cash of $20,811;010. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following: a. Issuance of the bonds on April 1, Year 1 b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months, using the straight-line method.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter22: Corporations: Bonds
Section: Chapter Questions
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On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds
at a market interest rate of 8%, receiving cash of $20,811;010. Interest is
payable semiannually on April 1 and October 1. Journalize the entries to record
the following:
a. Issuance of the bonds on April 1, Year 1
b. First interest payment on October 1, Year 1, and the amortization of bond
premium for 2 months, using the straight-line method.

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