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On 1/1/16, Dillard sold 1,000, $1,000 face 4% bonds, interest paid semi-annually on 7/1 and 12/31...

On 1/1/16, Dillard sold 1,000, $1,000 face 4% bonds, interest paid semi-annually on 7/1 and 12/31 with a maturity term of 25 years. The selling price was $1,391,962. The effective interest method is appropriate

Prepare all appropriate journal entries

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Answer #1

As Per Information Provided, there is no information about Market Rate of Interest. So Here I provided Journal Entry for Issue of Bonds.

To record journal entries for interest Payment under effective interest method, we need Market Rate of Interest (effective rate of interest).

Here is Journal entry for issue of Bonds. Please provide me effective rate of interest or market rate of interest then i will provide entries for Interest Payments.

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