Wishaw Inc produces and sells outdoor equipment On July

1
Wishaw, Inc. produces and sells outdoor equipment. On July 1, 2014, Wishaw, Inc. issued
$150,000,000 of 20-year, 12% bonds at a market (effective) interest rate of 9%, receiving cash
of $191,403,720. Interest on the bonds is payable semiannually on December 31 and June 30.
The fiscal year of the company is the calendar year.Instructions1. Journalize the entry to record
the amount of cash proceeds from the issuance of the bonds.2. Journalize the entries to record
the following:a. The first semiannual interest payment on December 31, 2014, and the
amortization of the bond premium, using the interest method. (Round to the nearest dollar.)b.
The interest payment on June 30, 2015, and the amortization of the bond premium, using the
interest method. (Round to the nearest dollar.)3. Determine the total interest expense for
2014.View Solution:
Wishaw Inc produces and sells outdoor equipment On July 1
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