Ike issues $180,000 three-year 11% bonds dated January 1, 2019, which pay interest semiannually on June 30 and December 31. They are issued at $184,565. When the market rate is 10%.

A) Register the issue of bonds with a nominal value of $180,000 on January 1, 2019 at an issue price of $184,565.

Date	General diary	Debit	Credit
January 1

B) Complete the following table to calculate the total interest expense of the bonds that will be recognized over the life of the bonds.

Amount reimbursed:

_____ payments of ______

Face value at maturity ________

Total paid _______

Less amount borrowed _______

Total bond interest expense $_______

C) Prepare an effective interest amortization table for the first two years of the bonds.

End of semi-annual interest period	Cash interest paid	Bond interest expense	PremiumAmortization	unamortized premium	transport value
01/01/19
30/06/19
31/12/2019
30/06/20
31/12/20

D) me. Record the first interest payment on June 30.

ii. Record the second interest payment on December 31.