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Interest expense on bonds
I need help with finding interest expense on bonds. I can't find the interest expense from the information below for problems 1 & 2. I tried using examples from my book but I still can't figure it out.
Atlantis Inc. produces and sells voltage regulators. On July 1, 2007, Atlantis Inc. issued $800,000 of 10-year, 14% bonds at an effective interest rate of 13%. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. 1. Journalize the entry to record the first semiannual interest payment on December 31, 2007, including the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 2. Journalize the entry to record the interest payment on June 30, 2008, and the amortization of the bond premium, using the straight-line method. |
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