Refer to the information in RE14-5. Assume Corley, Inc., uses the effective interest method to amortize the discount.
Prepare the journal entry to record the first interest payment.
In RE14-5, On January 1, Corley, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%.
Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90.