On January 1, Pearson Corporation issued 5%, 20-year bonds at 105. The face value is $300,000 and interest is paid semiannually. Interest is paid January 1 and July 1. Prepare the journal entries to record::
a. Issuance of the bonds.
b. First semiannual interest payment and amortization of the premium using the straight-line method.

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The Answer of On January 1, Pearson Corporation issued 5%, 20-year bonds at 105. The face value is $300,000 and interest is paid semiannually. Interest is paid January 1 and July 1. Prepare the journal entries to record::
a. Issuance of the bonds.
b. First semiannual interest payment and amortization of the premium using the straight-line method.

On January 1, Pearson Corporation Issued 5%, 20-Year Bonds at 105