Make the journal entry to record the first interest payment

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Reference no: EM133004738

Question - Veltman Corp issued $400,000 8% 10 year bonds payable on May 31, 2017. Market rate on the date of issuance was 6%, interest is paid semiannually on November 30 and May 31.

REQUIRED -

A. Make the journal entry to record the issuance

B. Make the journal entry to record the first interest payment and amortization of bond premium using the effective interest method.

C. Present the beginning balance and information for the first two interest payments on the bond amortization schedule.

Reference no: EM133004738

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