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Keller company issued 12% bonds, dated January 1, with the face amount of $4 million...

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Accounting

Keller company issued 12% bonds, dated January 1, with the face amount of $4 million on January 1, 2020 for $3,576,242. The bonds mature on December 31, 2029 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30th and December 31, the second amortization period. Prepare the journal entry on December 31, 2020 for interest expense (the second amortization period).

Account Dr Cr
Interest expense

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