Refer to the information in RE14 5. Assume Corley, Inc., uses the effective interest method to amortize the discount.
Prepare the journal entry to record the first interest payment.In RE14 5, On January 1, Corley, Inc., issues 10%, 5 year bonds with a face value of $150,000 when the effective rate is 12%.Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90.