Bobblehead Corporation produces and sells basketball jerseys. On July 1, 2008, Bobblehead Corporation issued $16,000,000 of seven-year,

Question:

Bobblehead produces and sells basketball jerseys. On July 1, 2008, Bobblehead issued $16,000,000 of seven-year, 13% bonds at an effective interest rate of 10%, receiving proceeds of $18,375,706. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Instructions
1. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, 2008, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.)
b. The interest payment on June 30, 2009, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.)
2. Determine the total interest expense for 2008.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...