Swifty Inc is contemplating issuing 80000 5 year bond on January 1 2018 paying 5 interest on a semiannual basis every January 1 and July 1 Prepare the first year journal entries for the bond issue and interest expense assuming that the company uses straightline amortization a market interest rate of 4 and has a yearend of December 31 2018

Answer rating: 100% (QA)

Journal entry Date Particulars Amt Dr Amt Cr Jan 1 cash 720150 2020 Premium on bond payable 6r015... View the full answer