On July 1, 2014, Bryant Ind issued $100,000,000 of 20 year, 9% bonds at a market interest rate of 10%, receiving cash of 91,420,905. Interest on bonds is payable semiannually on Dec 31 and June 30. The fiscal year is the calendar year.
Journalize the first semiannual interest payment on Dec 31, and the amortization of the bond discount, using the straight line method.
Journalize the interest payment on June 30 2015, and the amortization of the bond discount, using the straight line method.
Determine the total interest expense for 2014