Bond Issue, Interest Payments, Effective Interest Rate Method, Amortization Table On January 1, 2015, the Landon Capital Partners, a U S GAAP reporter, issued $ 600,000 par value, 6 , six year bonds Interest is payable semiannually each January 1 and July 1 with the first interest payment due at th...

a Present value computation for I Y 2 4 2 and N 12 6 years x 2 using the excel spreadsheet N I Y PV ...

Bond Issue, Interest Payments, Effective Interest Rate Method, Amortization Table. On January 1, 2015, the Landon Capital

Question:

Bond Issue, Interest Payments, Effective Interest Rate Method, Amortization Table. On January 1, 2015, the Landon Capital Partners, a U. S. reporter, issued $ 600,000 par value, 6%, six- year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2015. The market rate of interest on the date of the bond issue was 4%.
Required
a. Determine the issue price of the debt.
b. Prepare the amortization table for the bond issue, assuming that Landon uses the effective interest rate method of amortization.
c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume the company uses a premium or discount account, if needed. GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...