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Journalize the entries to record the sale of the bonds

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Question - On January 1, 2019 Fanning Company issued $3,000,000 of ten year 8% bonds to finance its operations. Interest is payable on June 1, and December 31. The bonds were issued at an effective rate of 10%, resulting in Fanning Company receiving cash of $2,626,135. Fanning uses the straight-line method to amortize the bond, and the bonds are 10-year bonds.

Required - Journalize the entries to record the following:

a) Sale of the bonds.

b) The June 1, interest payment.

c) The December 31, Interest Payment.

d) The bond was called back @ 101 on January 5, 2020.

Reference no: EM132875454

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