Create the journal entry to record the interest expense

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On 1 July 20X0, Sandalwood Company issued $10 million, 5 year, 5% bonds at 95, with interest payable on 31 December and 30 June. The company policy is to use the straight-line method issued to amortise the bond discount or bond premium.

Required:

Question 1: Prepare the journal entry to record the sale of these bonds at the issue date.

Question 2: Prepare the journal entry to record the interest expense and bond amortisation on 31 December 20X0. Assume no previous accrual of interest

Reference no: EM132544874

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