Question $2$

Incorrect

Mark $0\mathrm{.}00$ out of $1\mathrm{.}67$

Recording Bond Entries and Preparing an Amortization Schedule$-$ Effective Interest Method, Premium

Mitchell Inc. issued $300$ of its $6\%,$$$1,000$ bonds on January $1$ of Year $1.$ The bonds pay cash interest semiannually each June $30$ and December $31$ and were issued to yield $5\%.$ The bonds mature in five years on December $31,$ and the company uses the effective interest method to amortize bond discounts or premiums.

Required

a$.$ Determine the selling price of the bonds.

b$.$ Prepare an amortization schedule for the first two years of the bond term.

c$.$ Prepare journal entries on the following dates.

January $1$ of Year $1,$ bond issuance.

June $30$ of Year $1,$ interest payment.

December $31$ of Year $1,$ interest payment.

Note: Round amount to the nearest whole dollar.

a$.$ Selling orice of hands

Note: Round amounts in schedule to the nearest whole dollar.

Note: Do not use negative signs.

$\backslash$table$[[$b$.,$Date,,Cash,,$\backslash$table$[[$Interest$],[$Expense$]],,,\backslash$table$[[$Premium$],[$Amortization$]],,$Bonds Payable, Net$],[,$Jan $1,$ Year $1,,,,,,,,$$$,0x$