I’m having trouble calculating what I need to make the journal entries for this:
Chaney Corporation issued $ 2,000,000 of 9 percent bonds on October 1, 20×7, at 96. The bonds are dated October 1 and pay interest semiannually. The market interest rate is 10 percent, and Chaney’s fiscal year ends on December 31. Prepare the entries to record the issuance of the bonds, the accrual of the interest on December 31, 20×7, and the first semiannual interest payment on April 1, 20×8. Assume the company uses the effective interest method to amortize the bond discount.