On December 31,2019,when the market rate was 12%,Ricken Corp issued $2,000,000,14%,5-year bonds.Interest is payable semiannually on June 30 and December 31.The bonds were issued for $2,147,214,and the corporation uses the effective interest method of amortizing bond premium or discount.Prepare the journal entries to record the issuance of the bonds and the first interest payment.

Question

On December 31,2019,when the market rate was 12%,Ricken Corp issued $2,000,000,14%,5-year bonds.Interest is payable semiannually on June 30 and December 31.The bonds were issued for $2,147,214,and the corporation uses the effective interest method of amortizing bond premium or discount.Prepare the journal entries to record the issuance of the bonds and the first interest payment.
On December 31,2019,when the market rate was 12%,Ricken Corp issued $2,000,000,14%,5-year bonds.Interest is payable semiannually on June 30 and December 31.The bonds were issued for $2,147,214,and the corporation uses the effective interest method of amortizing bond premium or discount.Prepare the journal entries to record the issuance of the bonds and the first interest payment.

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The Answer of On December 31,2019,when the market rate was 12%,Ricken Corp issued $2,000,000,14%,5-year bonds.Interest is payable semiannually on June 30 and December 31.The bonds were issued for $2,147,214,and the corporation uses the effective interest method of amortizing bond premium or discount.Prepare the journal entries to record the issuance of the bonds and the first interest payment.

On December 31,2019,when the Market Rate Was 12%,Ricken Corp Issued