On January 1, 2017, Shirley Corporation puchased 10% bonds dated January 1, 2017, with a...
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On January 1, 2017, Shirley Corporation puchased 10% bonds dated January 1, 2017, with a face amount of $10 million. The bonds mature in 10 years. For bonds of similiar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.
1. record journal entry to record the bond purchase by Shirley on January 1, 2017
2. prepare journal entry to record interest on June 30, 2017, using the effective interest method.
3. prepare journal entry to record interest on December 31, 2017, using the effective interest method
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