The Duros Corp issued a $1,000,000, 5%, 10 year bond at 105. This pays interest annually and the company uses a straight-line amortization for all premiums and discounts. Which entry properly reflects the payment of the first year of interest and proper treatment of the premium or discount (if applicable)?

Answer rating: 100% (QA)

At the issuance of the bond Duros Corp received 1050000 105 of the face value of 1000... View the full answer