ACG 2021 Lecture Notes - Lecture 19: Interest Expense, Retained Earnings, Income Statement
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4 Apr 2018
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Part 2 is complete, but I need help with the other sectionsplease!
Ike issues $260,000 of 9%, three-year bonds dated January 1,2015, that pay interest semiannually on June 30 and December 31.They are issued at $266,811. Their market rate is 8% at the issuedate.
1. Prepare the January 1, 2015, journal entryto record the bonds' issuance.
2. Complete the below table to calculate thetotal bond interest expense to be recognized over the bonds'life.
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3. Prepare an effective interest amortizationtable for the bonds' first two years. (Enter all amountspositive values.)
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4. Prepare the journal entries to record thefirst two interest payments.
5. Prepare the journal entry to record thebonds' retirement on January 1, 2017, at 98.