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On 1/1/2020, Nicky Co issued 1 million dollars, 10%, 5 year bonds with interest payable...

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Accounting

On 1/1/2020, Nicky Co issued 1 million dollars, 10%, 5 year bonds with interest payable every January 1. The bonds were issued for $1,081,105. On this date, the market rate of interest was 8%. Nicky uses the effective-interest-method of amortizing bond discounts and premiums. On December 31, 2020, when Nicky records its first year end adjusting journal entry pertaining to these bonds, the entry will include a debt to Interest Expense of A 100,811 B 108110 C 100000 D 86,488

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