What journal entry will Northgate Minerals record

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Question - On July 1, 2011, Northgate Minerals issued 100 10-year bonds (par value of $1,000 each). The coupon rate on the bonds was 9%, while the market rate for a similar debt security was currently yielding 10%. Interest is paid on June 30th of each of the 10 years, with the first interest payment occurring on 6/30/2012 and the final payment (and repayment of principle) occurring on June 30 2021. Northgate incurs $5,000 in fees related to the underwriting of the bond. What journal entry (if any) will Northgate Minerals record on 12/31/2011, assuming they are a 12/31 fiscal year end firm that prepares annual financial statements each year?

Reference no: EM132987831

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