On January 1, 2019 Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Lightfoot uses the effective interest method to amortize the premium on June 30, 2019. Required: Prepare the journal entry to record the first interest payment on June 30, 2019.

Answer rating: 100% (QA)

Semi Annual interest payment 275000 x 10 x 612 13750 Present value of principal to be received at th... View the full answer