Given the Following Data, Prepare the Journal Entry to Record

question 173

Essay

Given the following data, prepare the journal entry to record interest expense and any related amortization on December 31st of the first year using the effective method. Assume interest is paid annually on January 1. The bonds were issued on January 1 for $7,411,233.
Bonds Payable $8,000,000 (matures in 10 years)
Contract rate = 5%
Yield = 6%
Round answers to nearest dollar.

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Definitions:

THC

Tetrahydrocannabinol, the principal psychoactive constituent of cannabis.

Meditation

A practice of concentrated focus upon a sound, object, visualization, the breath, movement, or attention itself in order to increase awareness of the present moment, reduce stress, promote relaxation, and enhance personal and spiritual growth.

Sympathetic Nervous

Part of the autonomic nervous system that activates the body's fight-or-flight response during stressful or emergency situations.

Hallucinogen

A hallucinogen is a substance that induces alterations in perception, thinking, and feeling, leading to experiences that may drastically differ from reality.