Refer to the information in RE14-1. Assume Canglon uses the effective interest method to amortize the discount.

Question:

Refer to the information in RE14-1. Assume Canglon uses the effective interest method to amortize the discount. Prepare the journal entry to record the first interest payment.
In RE14-1
Canglon, Inc issues 10%, 5-year bonds with a of $150,000 when the effective rate is 12%. Interest is to be paid semiannually
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...