McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2012, McCool Corporation issued $30,000,000 of five-year, 10% bonds at a market interest rate of 8%, receiving cash of $32,446,500. Interest is payable semiannually on April 1 and October 1.
b. Journalize the entry to record the first interest payment on October 1, 2012, and amortization of bond premium for six months, using the straight-line method.For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".