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Prepare the journal entry to record the issuance of bonds

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Question - On January 1, 2017, Miranda Corp. issued $500,000, 8%, 3-year bonds when the market rate was 12% and received $450,827 in proceeds. Interest payment will be made semi-annually after the issue date of the Bonds.

a) Prepare the journal entry to record the issuance of the Bonds on January 1, 2017.

b) Prepare the general journal entry to record interest expense and the cash payment on the first interest payment date.

c) What will be the carrying value of the Bonds after the first interest payment date?

Reference no: EM133088151

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