Wright corporation issued $4,000,000 of 8% bonds on October 1,2014, due on October 1,2019. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold for $3,691,117 to yield 10% effective interest.
A. Prepare the initial entry for the issuance of the bonds
B. Using the effective interest method prepare journal entry for the first interest payment.
C. Prepare a journal entry for the second interest payment.