On January 1, 2018, Ellison Co. issued 9 year bonds with a facevalue of $250,000,000 and a stated interest rate of 7.5%, payablesemiannually on July 1 and January 1. The bonds were sold to yield8%.
a. The issue price of the bonds is
b. Record the issuance on January 1, 2018.
c. Prepare the journal entries for the interest expense andpayments for 2018, 2019, 2020, 2021 and 2022.
