Bight Corporation issued $400,000 of 5-year bonds on April 1, 2016. Interest is paid semi-annually on April

Question:

Bight Corporation issued $400,000 of 5-year bonds on April 1, 2016. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the bond issue.

Instructions
(a) Were the bonds issued at a discount or at a premium?
(b) What is the bonds' face value?
(c) What will the bonds' amortized cost beat the maturity date?
(d) What will be the total interest payment over the five-year life of the bonds? Total interest expense?
(e) Prepare the journal entry to record the issuance of the bond.
(f) Prepare the journal entry for the first interest payment.
(g) Prepare the adjusting journal entry on December 31, 2016, assuming this is Bight's year end.
(h) Prepare the journal entry for the payment of interest on April 1, 2017. Assume no reversing entries have been used.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...