題組內容

三、Abott Ltd. issues $315,000 of 4%, 15-year bonds dated January 2, 2014, that pay interest semiannually on June 30 and December 31. They are issued at $253,263, and their market rate is 6% at the issue date. Abott Ltd. applies effective interest method for amortization of bonds. Required:

3. Prepare the journal entries to record the first two interest payments.(10%)