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  1. business
  2. accounting
  3. b. $2,586,545 shunda se 8%, receiving cu is on jan

b. $2,586,545 Shunda se 8%, receiving cu is on January 1. The Appendix 2 EX...

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Accounting

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b. $2,586,545 Shunda se 8%, receiving cu is on January 1. The Appendix 2 EX 11-15 Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers. On January 1 sh. $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8% e of $32,433,150. Interest is payable semiannually. Shunda's fiscal year begins on lanu. company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of premium. Round to the dollar. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar b. Determine the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for $32,433,150 rather than for the face amount of $30,000,000. AJ!.. 4 At

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