On January 1 2017 Trapp Enterprises issued 9% 10-year bonds with a face amount of $900000 at 96. Interest is payable annually on January 1. The bonds were issued for an effective interest rate of 10%.
Instructions
Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses effective-interest amortization.

Question

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The Answer of On January 1 2017 Trapp Enterprises issued 9% 10-year bonds with a face amount of $900000 at 96. Interest is payable annually on January 1. The bonds were issued for an effective interest rate of 10%.
Instructions
Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses effective-interest amortization.

On January 1 2017 Trapp Enterprises Issued 9% 10-Year Bonds