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Prepare the entries for bond issue on June

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Reference no: EM132861873

Problem - Wright Industries needs to raise capital for a factory expansion. The board of directors has just concluded negotiations with an underwriter to issue $3,500,000 of 8%, 15-year callable bonds dated June 30, 2020, with interest payment dates of December 31 and June 30. The bonds are issued on June 30, 2020, at 102.5 when market rate is at 7.5%. Wright's year-end is December 31 and effective interest rate amortization is to be used. 

Required - Prepare the entries for bond issue on June 30, 2020 and the first interest payment on Dec 31, 2020.

Reference no: EM132861873

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