Deane Company issues $5 million, 10-year, 9% bonds at 96  on January 1, 2010, with interest payable on July 1 and January 1, 2010. The straight-line method is used to amortize bond discount.

Prepare the journal entry to record interest expense and bond discount amortization on July 1, 2010, assuming no previous accrual of interest.

Answer rating: 100% (QA)

Face Value of Bond 5 million ie 5000000 Number of Bonds 5000000 10... View the full answer