Question: Alternate problem E Goodhew Software Systems, Inc., issued USD 100,000 face value of 10 percent, 20-year bonds on 2009 July 1. The bonds are dated

Alternate problem E Goodhew Software Systems, Inc., issued USD 100,000 face value of 10 percent, 20-year bonds on 2009 July 1. The bonds are dated 2009 July 1, call for semiannual interest payments on July 1 and January 1, and are issued to yield 12 percent (6 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 and calculate all amounts to the nearest dollar.

c. Prepare entries to record the issuance of the bonds, the first six months' interest on the bonds, and the adjustment needed on 2010 June 30, assuming Goodhew's fiscal year ends on that date.

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