Question: St. Cloud Manufacturing, Inc., issued five-year, 9.2 percent bonds with a total face value of $500,000 on December 31, 2008, for $484,000. The bonds pay

St. Cloud Manufacturing, Inc., issued five-year, 9.2 percent bonds with a total face value of $500,000 on December 31, 2008, for $484,000. The bonds pay interest on June 30 and December 31 of each year.

Required:

1. Prepare an amortization table.

2. Prepare the entries to recognize the bond issuance and the interest payments made on June 30, 2009, and December 31, 2009.

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