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On January $1$ of this year, Bocchini Corporation sold a $$10$ million, $8\mathrm{.}25$ percent bond issue. The bonds were also dated January $1,$ had

a yield of $8$ percent, pay interest each December $31,$ and mature $10$ years from the date of issue. Use Table $8$C$\mathrm{.}1,$ Table $8$C$.2.$

Required:

Prepare the journal entry to record the issuance of the bonds. $($If no entry is required for a transaction$/$event$,$ select $"$No journal

entry required" in the first account field. Round time value factor to $4$ decimal places. Enter your answers in dollars not in millions

rounded to the nearest whole dollar.$)$

Answer is complete but not entirely correct.

Prepare the journal entry to record the interest payment on December $31$ of this year. Use the effective$-$interest method of

amortization. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time

value factor to $4$ decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.$)$

Answer is complete but not entirely correct.

Show how the interest expense and the bonds payable should be reported on the financial statements for this year. $($Enter your

answers in dollars not in millions rounded to the nearest whole dollar.$)$

Answer is complete but not entirely correct.

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