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1.Assume that $140,000 of Denham Springs school dostrict 8% bonds are sold on the bond issue date for $128,598 interest is payable semiannually, and the bonds mature in 15 years. The purchase price provides a return of 9% on the investments.
2.What entries would be made on the investor's books for the receipt of the first two interest payments, assuming premium or discount amortization on each interest date by (a) the straight line method and (b) the effective interest method
3.What entries would be made on Denham Springs school districts books to record the first two interest payments, assuming premium or discount amortization on each interest date by (a) straight line method and (b) the effective interest method
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