C. Assume that the market interest rate is 8%. 1. Prepare the journal entry to record...

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C. Assume that the market interest rate is 8%. 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2023. 2. 3. 4. Construct a bond amortization table for the bonds that shows the amounts of interest expense and amortization at each June 30 and December 31. Prepare journal entries on June 30, 2022, and December 31, 2023. On December 31, 2027, ABC Co. repays the principal of $100,000 plus the final coupon payment of $3,000. Prepare all necessary journal entries. 5. Instead, assume that on January 1, 2027, when the carrying value of the bonds is $96,371, ABC Co. retires all the bonds at 98 (i.e., $98,000). Prepare all necessary journal entries. C 2. Date 01/01//2023 06/30/2023 12/31/2023 06/30/2024 12/31/2024 06/30/2025 12/31/2025 06/30/2026 12/31/2026 06/30/2027 12/31/2027 Cash Paid Amortization Schedule Interest Expense (Effective Interest) $3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $3,676 3,703 $676 703 731 760 790 822 855 889 925 962 8,111 * The sum of the 10 amounts shown equals $8,113. The $2 difference is due to rounding. Discount amortized 3,731 3,760 3,790 3,822 3,855 3,889 3.925 3,962 Carrying Value of Bonds $91,889 92,565 93,268 93,999 94,759 95,549 96,371 97,226 98,115 99,040 100,000 C. Assume that the market interest rate is 8%. 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2023. 2. 3. 4. Construct a bond amortization table for the bonds that shows the amounts of interest expense and amortization at each June 30 and December 31. Prepare journal entries on June 30, 2022, and December 31, 2023. On December 31, 2027, ABC Co. repays the principal of $100,000 plus the final coupon payment of $3,000. Prepare all necessary journal entries. 5. Instead, assume that on January 1, 2027, when the carrying value of the bonds is $96,371, ABC Co. retires all the bonds at 98 (i.e., $98,000). Prepare all necessary journal entries. C 2. Date 01/01//2023 06/30/2023 12/31/2023 06/30/2024 12/31/2024 06/30/2025 12/31/2025 06/30/2026 12/31/2026 06/30/2027 12/31/2027 Cash Paid Amortization Schedule Interest Expense (Effective Interest) $3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $3,676 3,703 $676 703 731 760 790 822 855 889 925 962 8,111 * The sum of the 10 amounts shown equals $8,113. The $2 difference is due to rounding. Discount amortized 3,731 3,760 3,790 3,822 3,855 3,889 3.925 3,962 Carrying Value of Bonds $91,889 92,565 93,268 93,999 94,759 95,549 96,371 97,226 98,115 99,040 100,000

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