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What was the carrying value after the january amortization

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On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds at a price of 95. The bonds pay interest annually on January 1. The company uses the straight-line method of amortization.

Question A. What would the January 1, 2021 issue date and the January 1, 2022 interest payment date journal entries look like?

Question B. Based on the above information, what was the carrying value of the bonds at the time of issue?

Question C. What was the carrying value after the January 1, 2022 amortization entry? Based on the issue price, was the market rate of interest at the time these bonds were sold above the 8% face rate or below it?

Reference no: EM132862718

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