Straight line amortization of bond premium or discount
Four Seasons issues $2,000,000 of 8%,
4-year bonds dated January 1, 2017, that pay interest semiannually
on June 30 and December 31. The bonds are issued at a price of
2,030,00
Prepare the January 1, 2017, journal
entry to record the issuance.
For each semiannual period, compute
the cash payment,
the straight-line premium or discount amortization
the bond interest expense
Cash proceeds= 2,030,000 x
.08
Cash proceeds=
1,624,000
Bonds interest expense= cash...