On October 1, 2025, Shenandoah issued 10%, 10-year bonds wit…
On October 1, 2025, Shenandoah issued 10%, 10-year bonds with a face value of $800,000 for $708,241, an effective yield of 12%. Interest is paid on April 1 and October 1, with any premiums or discounts amortized using the effective interest method. The bond issuance is recorded correctly on October 1, 2025. Shenandoah’s fiscal year end is December 31st. On December 31, 2025, the Journal Entry to record interest would include a: