On January 1, 2024, Chang's Company issued 10% bonds dated January 1, 2024, with a face amount of $19.9 million. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Prepare the journal entry to record interest on June 30, 2024, using the effective interest method.

On January 1, 2024, Chang's Company issued 10% bonds dated January 1, 2024, with a face amount of $19.9 million. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Prepare the journal entry to record interest on June 30, 2024, using the effective interest method.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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