Answer for question 2

SHI Antonio Adderley MBA 2012 Problems 1.) A company issued 10%, 10-year bonds with a par value of $1,000,000 10%, 10-year bonds with a par value of $1,000,000 on January 1, 2013, at a seing price of $885,295. to yield the buyers 12 return The company uses the effective interest amortization method. Interest is paid semiannually each June 30 and December 31. Prepare an amortization table for the first two payment periods using the format shown below: Semiannual Interest Period Cash Interest Paid Bond Interest Expense Discount Amortization Unamortized Discount Carrying Value (2) Prepare the journal entry to record the first semiannual interest payment