Buzzy Company sold $400,000 worth of 12%, ten year bonds onJuly1st, 2019, at a time when the market rate of interest onsimilar investments was 10%. The semiannual bonds pay interest onDecember 31st and June 30th . (a) Using the appropriate PresentValue Table(s), determine the amount the bonds should sell for;their present value. (b) Journalize the necessary entry for thesale of the bonds. (c) Journalize the first interest payment onDecember 31, 2019 including the discount (or premium?) amortizationassuming the company makes use of the straight-line method of bondinterest amortization.
