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How do make journal entry to record the interest payment

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Reference no: EM132601918

On January 1, 2012, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2012, and mature January 1, 2017 with interest payable December 31 of each year. Osborn Company allocates interest and amortized discount or premium on the effective-interest basis.

Required

Question a) Prepare the journal entry at the date of the bond issuance.

Question b) Prepare schedule of interest expense and bond amortization for 2012-2014.

Question c) Prepare the journal entry to record the interest payment and the amortization for 2012.

Question d) Prepare the journal entry to record the interest payment and the amortization for 2014.

Reference no: EM132601918

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