The amortization of bond premium-using straight-line method

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Reference no: EM13824119

Wishaw, Inc. produces and sells outdoor equipment. On July 1, 2014, Wishaw, Inc. issued $150,000,000 of 20-year, 12% bonds at a market (effective) interest rate of 9%, receiving cash of $191,403,720. Interest on the bonds is payable semi annually on December 31 and June 30. The fiscal year of the company is the calendar year.

Journalize the entries to record the following:

a. The first semi annual interest payment on December 31, 2014, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)

Reference no: EM13824119

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