Business, 07.05.2021 21:40 saurav76

On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually every December 31. The total issue price of the bonds is $173,160. The company uses the effective-interest amortization method. Prepare all journal entries under this bond arrangement for the first two years for both cases: (1) total issue price of the bonds is $173,160; (2) total issue price of the bonds is $215,443. In the journal entries, put bond discounts and premia in separate accounts. 1. What is the issuance price of the bonds on January 1?
2. What amount of interest expense is recorded on December 31 of this year?

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On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a c...