The amortization of the discount


On July 1, 2009 a corporation issued $800,000 of 9%, 8 yearbonds to yield 10%. Interest is paid semiannually on December 31and June 30, and the company uses the straight line method toamortize premium or discounts.prepare the journal entry to issue the bonds on July 1, 2008and prepare the journal entry to record the first interest paymentand the amortization of the discount on December 31, 2008.

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Accounting Basics: The amortization of the discount
Reference No:- TGS0719300

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