Question: Alternate problem D Creative Web Page issued USD 600,000 face value of 15 percent, 20-year bonds on 2010 October 1. The bonds are dated 2010

Alternate problem D Creative Web Page issued USD 600,000 face value of 15 percent, 20-year bonds on 2010 October 1. The bonds are dated 2010 October 1, call for semiannual interest payments on April 1 and October 1, and are issued to yield 16 percent (8 percent per period).

a. Compute the amount received for the bonds.

b. Prepare an amortization schedule similar to that in Exhibit 44. Enter data in the schedule for only the first two interest periods. Use the interest method.

c. Prepare journal entries to record issuance of the bonds, the first six months'

interest expense on the bonds, and the adjustment needed on 2011 May 31, assuming Creative Web Page's fiscal year ends on that date.

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