Interest payment assuming straight-line amortization

Reference no: EM13130926

On January 1, 2011, A Company issued 500 of its $1,000, ten-year, 8% bonds. The bonds were dated January 1, 2011, and interest is paid annually each December 31. The bonds issued at 98. Prepare the appropriate journal entries on January 1 for the issuance of the bonds and on December 31 for the first interest payment assuming straight-line amortization.

Reference no: EM13130926

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