Question: Refer to E10-14. Use the approach presented in Appendix 10B. Data from 10-14 Shuttle Company issued $5,000,000, three-year, 4.1 percent bonds on January 1, 2017.

Refer to E10-14. Use the approach presented in Appendix 10B.

Data from 10-14

Shuttle Company issued $5,000,000, three-year, 4.1 percent bonds on January 1, 2017. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 4 percent.

Required:
1. Prepare the journal entry to record the issuance of the bond.
2. Complete a bond payment schedule. Use the effective-interest method.
3. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for 2017, 2018, and 2019?

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Req 1 Principal 5000000 x p n3 i4 Table 10C1 08890 4445000 Interest 5000000 x 41 x P n3 i4 Table 10C... View full answer

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