Shunda Corporation wholesales parts to appliance

manufacturers On January 1
Shunda Corporation wholesales parts to appliance manufacturers. On January 1, 2014, Shunda
Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of
7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation’s
fiscal year begins on January 1. The company uses the interest method.a. Journalize the
entries to record the following:1. Sale of the bonds.2. First semiannual interest payment,
including amortization of premium. Round to the nearest dollar.3. Second semiannual interest
payment, including amortization of premium. Round to the nearest dollar.b. Determine the bond
interest expense for the first year.c. Explain why the company was able to issue the bonds for
$23,829,684 rather than for the face amount of $22,000,000.View Solution:
Shunda Corporation wholesales parts to appliance manufacturers On January 1
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