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Prepare the journal entry for the second interest payment

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Reference no: EM132926088

Question - On January 1, 2021, WYR Wildcats Inc. issued $900,000 of 16% bonds dated January 1.

1. Interest of $72,000 is payable semiannually on June 30 and December 31.

2. The bonds mature in three years.

3. The market yield for bonds of similar risk and maturity is 8%.

Required -

1. What will the bonds be sold for?

2. Prepare the journal entry to record the issuance of the bonds for WYR Wildcats.

3. Prepare the Journal entry for the second interest payment paid on December 31, 2021.

Reference no: EM132926088

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