Answer Happy

On January 1, 2022, Swifty Corporation issued $3,880,000 face value, 11%, 10-year bonds at $3,660,771. This price resulted in an effective-interest rate of 12% on the bonds. Swifty uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.

Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2023