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On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year...

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Accounting

On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. Mahoney Sales uses the straight-line method to amortize the bond premium. On June 30, 2014, when Mahoney makes the first payment to bondholders, how much will they report as interest expense?

Journalize all required transactions on Jan 2 214, June 30 2014 and Dec 31 2014. Show calculations.

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