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The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31,...

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Accounting

The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31, 2014. The bond pays interest every March 31. The market rate of interest on the issuance date was 4%. The company uses the straight-line method for amortization. The journal entry to record the first interest payment would include a

(Correct answer is Debit to Interest Expense for $28,500 but I don't know how to get there)

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