Prepare both of the journal entries to record interest

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On January 1, 2010, Carla Industries issued 10% bonds dated January 1, 2010, which has a face amount of 25 million. The bonds mature in 2020. The market rate of interest 12%. The interest is paid on June 30 and December 31.

Determine the price of the bonds at January 1, 2010, then prepare the journal entry to record the issuance by Carla Industries on Jan 1, 2010, and prepare both of the journal entries to record interest on June 30 and December 31.

Reference no: EM13125471

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