Question: questions write your answer in the space provided. Problem I (20 Points) Recommended Time: 25 minutes ABC Company issued bonds with the following details Face

questions write your answer in the space provided. Problem I (20 Points) Recommended Time: 25 minutes ABC Company issued bonds with the following details Face Value Stated interest rate Market interest rate Maturity date $200,000 8% 10% January 1, 20202 Date of issuance Interest payments due Method of amortization January 1, 2017 Annually on December 31 Effective interest Instructions: a. Compute the selling price of the bonds and the amount of issuance premium or discount. b. Prepare the amortization schedule thru 2020 c. Prepare the journal entry for the issuance of bonds d. Prepare journal entries (subsequent to issuance) for 2017. Assume accounting period is calendar year ANSWER IN SPACE PROVIDED ON NEXT PAGE

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