Use the information in RE14-8, except assume that the bonds are sold for $318,000. Prepare the journal

Question:

Use the information in RE14-8, except assume that the bonds are sold for $318,000. Prepare the journal entries to record the issuance on April 1, 2019, and the first interest payment on October 1, 2019. Use the straight-line method to amortize the premium.

RE14-8

Bangles Corporation issued 5-year, 11% bonds with a face value of $300,000 on April 1, 2019, for $288,000. Interest is paid semiannually at October 1 and April 1.

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... 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...

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