Hemby Corporation wholesales oil and grease products to equipment manufacturers. On March 1, 2008, Hemby Corporation issued

Question:

Hemby wholesales oil and grease products to equipment manufacturers. On March 1, 2008, Hemby issued $4,000,000 of five-year, 13% bonds at an effective interest rate of 11%. Interest is payable semiannually on March 1 and September 1.
Journalize the entries to record the following:
a. Sale of bonds on March 1, 2008. (Use the tables of present values in Exhibits 3 and 4 to determine the bond proceeds. Round to the nearest dollar.)
b. First interest payment on September 1, 2008, 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...