Allen Media Group issues $2,000,000 of 8%, 10 year bonds dated January 1, 2022, that pay semiannual interest on June 30 and December 31. The bonds were issued at a price of $1,795,000. • Prepare the journal entry to record the bonds' issuance. • For each semi-annual period, compute a. the cash payment, b. the straight line discount, and c. the bond interest expense. • Determine the bond interest expense over the life of the bond.

Allen Media Group issues $2,000,000 of 8%, 10 year bonds dated January 1, 2022, that pay semiannual interest on June 30 and December 31. The bonds were issued at a price of $1,795,000. • Prepare the journal entry to record the bonds' issuance. • For each semi-annual period, compute a. the cash payment, b. the straight line discount, and c. the bond interest expense. • Determine the bond interest expense over the life of the bond.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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