On January 1, 2018, Nori Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated January 1, 2018, at 105. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year-end. Instructions: Prepare the journal entries to record the following: 

1. The issuance of bonds on January 1, 2018. 

2. The payment of interest and the discount (or premium) amortization on July 1, 2018. 

3. The accrual of interest and the discount (or premium) amortization on December 31, 2018. 

4. The payment of interest on January 1, 2019. —-

Answer rating: 100% (QA)

Journal entries 1 Issuance of bonds Date Particulars Debit Credit 01012018 ... View the full answer