Nordic Company issued bonds with the following provisions: Maturity value: $60,000,000. Interest: 7.9 percent per annum payable semi-annually each June 30 and December 31. Terms: Bonds dated January 1, 2017, due five years from that date. The company’s fiscal year ends on December 31. The bonds were sold on January 1, 2017, at a yield of 8 percent.

Prepare the journal entries at the following dates: June 30, 2017; December 31, 2017; and June 30, 2018. Use the effective-interest method to amortize bond discount or premium.

Answer rating: 100% (QA)

NOTE Bones current issue priced calculated using EXCEL function ... View the full answer