A company issued 14%, 5-year bonds with a par value of $5,000,000 on January 1,

ID: 2627295 • Letter: A

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A company issued 14%, 5-year bonds with a par value of $5,000,000 on January 1, 2003. Interest is to be paid semiannually on each June 30 and December 31. The bonds were issued at $5,368,035 cash when the market rate for this bond is 12%

The company uses the effective interest method of amortization of any discount or premiun on bonds.

Prepare journal entries. (a) to record the issuance of this company's bonds (b) The first semiannual interest payment on June 30, and. (c) the second semiannual interest payment on December 31

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A company issued 14%, 5-year bonds with a par value of $5,000,000 on January 1,

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