On January 1, 2017, Blue Company issued $1,810,000 face value,
7%, 10-year bonds at $1,943,218. This price resulted in a 6%
effective-interest rate on the bonds. Blue uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on each January 1.
A. Prepare the journal entries to record the
following transactions. (Round answers to 0 decimal
places, e.g. 125. Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
1.
The...