On January 1, 2010, Karla Industries issued 10% bonds dated January 1,2010, which has a face amount of 25 million. The mature in 2020. The market rate of interest 12%. The interest is paid on June 30 and December 31. You must present the effect interest amortization table to support your entries. Determine the price of the bonds at January 1, 2010. Prepare the journal entry to record the issuance by Karla Industries on Jan 1,2010. Prepare both of the journal entries to record interest on June 30 and December 31.
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