Question $2$:

Banjo Co$.$ purchases a bond they classity as HTM$.$

The bond has an original face value of $$100,000$; a $8\%$ coupon rate, and $4$ years to maturity.

The market rate of interest currently is $13\%$ which makes Banjo Co$.$ have to pay $$85,127\mathrm{.}64$ for the bond today.

Part $1$: Make the necessary journal entry for the purchase of the bond:

$\backslash$table$[[$Account$,]]$

Part $2$: Build a full amortization schedule for the full life of the bond:

Cash Received Interest Revenue Amortized Value Carrying Value

Purchase

Year $1$

Year $2$

Year $3$

Year $4$