Travel In Style Limited issued $1,000,000 of 9% bonds on September 1, 2017 for $1,058,671. The term

Question:

Travel In Style Limited issued $1,000,000 of 9% bonds on September 1, 2017 for $1,058,671. The term of the bonds is September 1, 2017 to September 1, 2025, with interest payable quarterly each December 1, March 1, June 1, and September 1. The company uses the effective interest method with an effective rate of 8%.
(a) Prepare the company's journal entry for the September 1 issuance.
(b) Prepare the company's journal entry for the December 1 interest payment.