On December 31, 2019, when the market rate was 12%, Drum Corp issued $2,000,000, 14%, 5-year bonds. Interest is payable semi-annually on June 30 and December 31. The bonds were issued for $2,147,214, and the corporation uses the effective interest method of amortizing bond premium or discount.

Required

1. Prepare the amortisation table

2. Prepare the journal entries to record the issuance of the bonds and the first interest payment

Answer rating: 100% (QA)

1 Amortization Table PeriodBeginning BalanceCash Interest PaidInterest ExpenseAmortization of Premiu... View the full answer