Wright Industries needs to raise capital for a factory expansion.The board of directors has just concluded negotiations with an underwriter to issue $2,500,000 of 8%,15-year callable bonds dated June 30,2017,with interest payment dates of December 31 and June 30.The bonds are issued on June 30,2017,at 102.5.Wright's year end is December 31 and straight-line amortization is to be used.
a_Prepare the necessary journal entries to record the issuance of the bonds on June 30,2017,and the first interest payment on December 31,2017.
b_Show how the bonds will be presented on the December 31,2017,balance sheet of Wright Industries.

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The Answer of Wright Industries needs to raise capital for a factory expansion.The board of directors has just concluded negotiations with an underwriter to issue $2,500,000 of 8%,15-year callable bonds dated June 30,2017,with interest payment dates of December 31 and June 30.The bonds are issued on June 30,2017,at 102.5.Wright's year end is December 31 and straight-line amortization is to be used.
a_Prepare the necessary journal entries to record the issuance of the bonds on June 30,2017,and the first interest payment on December 31,2017.
b_Show how the bonds will be presented on the December 31,2017,balance sheet of Wright Industries.

Wright Industries Needs to Raise Capital for a Factory Expansion