Calculate the straight-line method of amortization


On January 1, 2008, a company issued 10%, 10-year bonds payable with a par value of 720,000. The bonds pay interest on July 1 and January 1. The bonds were issued for 817,860 cash, which provided the holders an annual yield of 8%. Prepare the journal entry to record the first semiannual interest payment, assuming it uses the straight-line method of amortization.

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Accounting Basics: Calculate the straight-line method of amortization
Reference No:- TGS0675054

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