On January 1,2018,a Company Issues 3-Year Bonds with a Face

question 251

Essay

On January 1,2018,a company issues 3-year bonds with a face value of $50,000 and a stated interest rate of 7%.Because the market interest rate is 9%,the company receives $47,469 for the bond.
Required:
Part a.Determine the interest expense,the cash payment for interest,and the amount of the premium that will be amortized during the year ending December 31,2018.
Part b.Prepare the journal entry to record the first interest payment on December 31,2018.

---

Definitions:

Biological Evolution

The process by which species of organisms change over time through variations in genetics and traits, leading to the emergence of new species.

Genetically Influenced Abnormalities

Disorders or conditions that are significantly affected by genetic factors, which can lead to deviations from the typical or expected physical or mental development.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, and behaviors that may cause distress or impairment in functioning.

Socially Withdrawn

A behavior pattern characterized by a significant reduction in social interaction and engagement with others.