On June 30, 2012, Mackes Company issued $5,000,000 face value of 13%, 20-year bonds at $5,376,150, a yield of 12%. Mackes uses t
he effective interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions.
a. The issuance of the bonds on June 30, 2012.
b. The payment of interest and the amortization of the premium on December 31, 2012.
c. The payment of interest and the amortization of the premium on June 30, 2013.
d. The payment of interest and the amortization of the premium on December 31, 2013.
It should be noted that when people want to purchase a product, they usually look for information themselves or probably seek informations from those close to them such as friends and family.
It should be noted that a consumer will use one of three general problem-solving variations, extended, limited, or routine, based on product knowledge and level of involvement.
