Question: Dawn Corporation sold 400 000 of 9 percent 10 year bonds for

Dawn Corporation sold $400,000 of 9 percent, 10-year bonds for face value on September 1, 2014. The issue date of the bonds was May 1, 2014. The company’s fiscal year ends on December 31, and this is its only bond issue. Prepare the journal entry to record the sale of the bonds on September 1 and the first semiannual interest payment on November 1, 2014.
What is the bond interest expense for the year ended December 31, 2014?

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  • CreatedMarch 26, 2014
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