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Mellilo Corporation issued $5 million of 20-year, 9.5 percent bonds on July 1,2011, at 98. Interest 30, 2031. Mellilos fiscal year ends on December 31. Prepare the following journal entries: a. July 1, 2011, to record the issuance of the bonds b. December 31, 2011, to pay interest and amortize the bond discount. c. June 30, 2031, to pay interest, amortize the bond discount, and retire the bonds at maturity s is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June (make two separate entries). explain the effect of amortizing the bond discount upon (1) annual net income and (2) annual net cash flow from operating activities. (Ignore possible income tax effects.) makore Dollor amounts are stated in
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