Question: Problem 1 : Bonds Alco Company issued a 5 - year, 5 % $ 1 0 0 , 0 0 0 face value bond on

Problem 1: Bonds
Alco Company issued a 5-year, 5% $100,000 face value bond on January 1,2024 at 102. Issuance costs were $400 and were incurred by Alco Company. Interest is paid each December 31. The effective interest rate after factoring in the issuance costs is 4.63%.
a. Complete the amortization table below for 2024,2025 and 2026.
\table[[Period,Interest Paid,Interest Expense,Amortization,Carrying Value],[\table[[1/1/2024],[Balance]],,],[12/31/2024,,,,],[12/31/2025,,,,],[12/31/2026,,,,]]
b. Prepare the journal entry for the payment of interest on December 31,2025.
c. The bonds are retired on May 1,2026 at 99. Make all entries to retire the bonds, including the entry to update amortization of the bond from January 1,2026 to May 1,2026.
Problem 1: Bonds Alco Company issued a 5-year, 5% $100,000 face

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