Straight-Line Discount Amortization
Response to the following problem:
The Bryan Company issued $500,000 of 10% face value bonds on January 1, 2010 for $486,000. The bonds are due December 31, 2012, and pay interest semiannually on June 30 and December 31. The company uses the straight-line amortization method.
Required
Prepare the journal entries to record the issuance of the bonds and the first two interest payments.