On January 1,2016,JetNew Corp.issued $300,000 of 8%,5-year bonds,with annual interest payments on January 1.The bonds were issued at face value.Note JetNew uses the effective-interest method of amortization.
a.Prepare the necessary journal entries to record the issuance of the bonds,December 31,2016 year-end entries if required and the first interest payment.
b.Prepare the journal entry to record the bond's maturity.

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The Answer of On January 1,2016,JetNew Corp.issued $300,000 of 8%,5-year bonds,with annual interest payments on January 1.The bonds were issued at face value.Note JetNew uses the effective-interest method of amortization.
a.Prepare the necessary journal entries to record the issuance of the bonds,December 31,2016 year-end entries if required and the first interest payment.
b.Prepare the journal entry to record the bond's maturity.