On January 1, 2017, Louisiana Corporation acquired a bond investment for $200,000

with a 6% discount, @ 8 years, for a total of $156,648 and $6,000 payable every six months.

(On January 1 and July 1). The bond matures on January 1, 2025 with a yield of 10%.

Bond Amortization

Paid

Interests

Discount

To the

Principal

Fixed

Paid

Amortized

Balance

1-Jan-17

1

1-Jul-17

2

1-Jan-18

3

1-Jul-18

4

1-Jan-19

5

1-Jul-19

6

1-Jan-20

7

1-Jul-20

8

1-Jan-21

9

1-Jul-21

10

1-Jan-22

11

1-Jul-22

12

1-Jan-23

13

1-Jul-23

14

1-Jan-24

15

1-Jul-24

16

1-Jan-25

The adjustment in the books of Luisisana Corporation for the issue of bono is:

DR

CR

The adjustment of the first interest payment as of July 2018 is:

DR

CR

Answer rating: 100% (QA)

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