Part B

Problem 10-10A (Part Level Submission) On January 1, 2017, Blue Corporation issued $1,830,000 face value, 5%, 10-year bonds at $1,572,937. This price resulted in an effective-interest rate of 7% on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. (a) Your answer correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 1,572,937 Discount on Bonds Payable 257063 Bonds Payable 1,830,000 (b) Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 125.) BLUE CORP. Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Interest Annual Interest Expense Bond Interest to Be Discount Unamortized Carrying Periods Paid Recorded Amortization Discount Value Issue date 1,572,937 $ $ to Be $ 91500 128100 36600 91500 N 3 91500