On January 1, Year 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of...

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On January 1, Year 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually on June 30 and Decer Assume Canglon uses the effective interest method to amortize the discount. Required: Prepare the journal entry to record the first interest payment on June 30, Year 1. On January 1, Year 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually on June 30 and Decer Assume Canglon uses the effective interest method to amortize the discount. Required: Prepare the journal entry to record the first interest payment on June 30, Year 1.

Answer rating: 100% (QA)

Journal Entry for First Interest Payment Effective Interest Method Date June 30 Year 1 Description Payment of First Semiannual Interest on Bonds Accou... View the full answer