On January 1,2016,Flight International,Incorporated,issued $300,000 face value,5-year bonds with a stated rate of 8% at an effective rate of 10% to yield $277,255.Interest is paid annually on December 31.Flight International,Incorporated,uses the effective-interest method of amortization.
Prepare entries for the following transactions:
a.Issuance of the bonds on January 1,2016.
b.Payment of interest and amortization of discount or premium on December 31,2016.

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The Answer of On January 1,2016,Flight International,Incorporated,issued $300,000 face value,5-year bonds with a stated rate of 8% at an effective rate of 10% to yield $277,255.Interest is paid annually on December 31.Flight International,Incorporated,uses the effective-interest method of amortization.
Prepare entries for the following transactions:
a.Issuance of the bonds on January 1,2016.
b.Payment of interest and amortization of discount or premium on December 31,2016.

On January 1,2016,Flight International,Incorporated,issued $300,000 Face Value,5-Year Bonds with a Stated