Wildhorse Company issued $4,000,000, 10%, 10-year bonds on January 1, 2017, for $1,060,713. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Wildhorse uses the effective-interest method to amortize bond premium or discount.

Prepare the journal entry to record the issuance of the bonds.

Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2017

Prepare the journal entry to record the payment of interest on January 1, 2018.

Answer rating: 100% (QA)

Date Jan 1 2017 Journal Entry Record the Accounts Explanations Bond ... View the full answer