Effective Interest Amortization

On December $31,$ Caper, Inc., issued $$400,000$ of $8\%,9-$year bonds for $$352,000,$ yielding an effective interest rate of $10\%.$ Semiannual interest is payable on June $30$ and December $31$ each year. The firm uses the effective interest method to amortize the discount.

Required

a$.$ Prepare an amortization schedule showing the necessary information for the first two interest periods. Round amounts to the nearest dollar.

b$.$ Prepare the journal entry for the bond issuance on December $31.$

c$.$ Prepare the journal entry to record the bond interest payment and discount amortization at June $30$ of the following year.

d$.$ Prepare the journal entry to record the bond interest payment and discount amortization at December $31$ of the following year.

a$.$

$\backslash$table$[[$Year$,\backslash$table$[[$Interest$],[$Period$]],\backslash$table$[[$Interest$],[$Paid$]],\backslash$table$[[$Interest$],[$Expense$]],\backslash$table$[[$Periodic$],[$Amortization$]],\backslash$table$[[$Balance$],[$of Unamortized$],[$Discount$]],\backslash$table$[[$Book Value$],[$of Bonds$],[$End of Period$]]],[$at issue,,$$,$$$,$$$,$$$,$$