On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. Mahoney Sales uses straight-line method to amortize bond premium. Please provide the journal entry for the first interest payment to be made on June 30, 2014.

Question

On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. Mahoney Sales uses straight-line method to amortize bond premium. Please provide the journal entry for the first interest payment to be made on June 30, 2014.
On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. Mahoney Sales uses straight-line method to amortize bond premium. Please provide the journal entry for the first interest payment to be made on June 30, 2014.

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The Answer of On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. Mahoney Sales uses straight-line method to amortize bond premium. Please provide the journal entry for the first interest payment to be made on June 30, 2014.

On January 2, 2014, Mahoney Sales Issued $10,000 in Bonds