Semiannual interest payment and premium

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Reference no: EM131015441

On January 1, 2014, Shields, Inc., issued $900,000 of 9%, 20-yeai bonds for $989,067, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year.

Show computations to confirm the bond issue price.
Indicate (he financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and premium amortization on June 30.2014. and (3) semiannual interest payment and premium amortization on December 31.2014.

Reference no: EM131015441

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