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On January 1,2025, Lily Corporation issued $2,150,000 face value, 6%,10-year bonds at $1,998,993. This price...

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Accounting

On January 1,2025, Lily Corporation issued $2,150,000 face value, 6%,10-year bonds at $1,998,993. This price resulted in an effective-interest rate of 7% on the bonds. The bonds pay annual interest, each January 1. Lily has a calendar year end. Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31,2025.

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