On January 1,2019,Maralie Company issued $500,000,4%,ten-year bonds payable at 92.The market rate at the date of issue is 6%.Interest is payable annually at its year-end on each December 31.Maralie uses the effective interest method of amortization.
A.Prepare the journal entry to record the issuance of the bonds on January 1,2019.
B.Prepare the journal entry to record the first interest payment and interest expense at December 31,2019.No entries have yet been made for interest on these bonds.
C.Prepare the journal entry to record the second interest payment and interest expense at December 31,2020.No entries have been made for these bonds since December 31,2019.
D.What would the carrying value of the bonds be on December 31,2020?

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The Answer of On January 1,2019,Maralie Company issued $500,000,4%,ten-year bonds payable at 92.The market rate at the date of issue is 6%.Interest is payable annually at its year-end on each December 31.Maralie uses the effective interest method of amortization.
A.Prepare the journal entry to record the issuance of the bonds on January 1,2019.
B.Prepare the journal entry to record the first interest payment and interest expense at December 31,2019.No entries have yet been made for interest on these bonds.
C.Prepare the journal entry to record the second interest payment and interest expense at December 31,2020.No entries have been made for these bonds since December 31,2019.
D.What would the carrying value of the bonds be on December 31,2020?

On January 1,2019,Maralie Company Issued $500,000,4%,ten-Year Bonds Payable at 92