Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan Corporation issued $24,000,000 of

Question:

Daan wholesales repair products to equipment manufacturers. On March 1, 2010, Daan issued $24,000,000 of five-year, 12% bonds at an effective interest rate of 10%, receiving cash of $25,853,146. Interest is payable semiannually on March 1 and September 1. Journalize the entries to record the following:
(a) Sale of bonds on March 1, 2010.
(b) First interest payment on September 1, 2010, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)

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...