Question: Example 2: 5 years bonds are issued at face value of $100,000 on Jan. 1, 2015, with a stated interest rate of 4%. Interest

Example 2: 5 years bonds are issued at face value of $100,000

Example 2: 5 years bonds are issued at face value of $100,000 on Jan. 1, 2015, with a stated interest rate of 4%. Interest paid annually on Dec. 31. Instruction: 1- Calculate the premium/Discount of the bonds, if the market interest rate was 8%. 2- Prepare the Amortization schedule for premium/Discount if any. 3- Prepare journal entries for 2015.

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