Company issued $5 million, 25 year bonds at $5,500,000, on Jan 1, 2012. The interest rate or the coupon rate is 8% and interest is paid on 12/31 of every year. Company uses straight line amortization. Do the entries to record the following:
1.Issue of the bonds on 1/1/2012
2.Interest payment on 12/31/2012
3.What is the carrying value or book value of the bonds after the first interest payment