Given the following data, prepare the journal entry to record interest expense and any related amortization on December 31 of the first year using the effective interest rate method. Assume interest is paid annually on January 1. The bonds were issued on January 1 for $7,411,233.?

Bonds payable, maturing in 10 years = $8,000,000Contract interest rate = 5%Market
(effective) interest rate = 6%?Round answers to nearest dollar.

Question

Bonds payable, maturing in 10 years = $8,000,000Contract interest rate = 5%Market 
(effective) interest rate = 6%?Round answers to nearest dollar.

Quizplus · Accepted Answer

The Answer of Given the following data, prepare the journal entry to record interest expense and any related amortization on December 31 of the first year using the effective interest rate method. Assume interest is paid annually on January 1. The bonds were issued on January 1 for $7,411,233.?

Bonds payable, maturing in 10 years = $8,000,000Contract interest rate = 5%Market 
(effective) interest rate = 6%?Round answers to nearest dollar.

Given the Following Data, Prepare the Journal Entry to Record