Answer:
Interest Expense 87,913
Discount on Bonds Payable* 7,913
Cash 80,000
* $79,127 ÷ 10 semiannual payments
PE 14-3A Discount amortization
Using the bond from Practice Exercise 14-2A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar.
Answer:
Interest Expense 87,913
Discount on Bonds Payable* 7,913
Cash 80,000
* $79,127 ÷ 10 semiannual payments
Answer:
Interest Expense 87,913
Discount on Bonds Payable* 7,913
Cash 80,000
* $79,127 ÷ 10 semiannual payments