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  3. on january 1, 2022, wildhorse co. issued $2,360,00

On January 1, 2022, Wildhorse Co. issued $2,360,000 face value, 7%, 10-year bonds at $2,201,642....

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On January 1, 2022, Wildhorse Co. issued $2,360,000 face value, 7%, 10-year bonds at $2,201,642. This price resulted in an effective-interest rate of 8% on the bonds. Wildhorse uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022

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