Aqua Zone issues $1.2 million, 7% bonds on January 1, 2015 that mature in twenty years. The

Question:

Aqua Zone issues $1.2 million, 7% bonds on January 1, 2015 that mature in twenty years. The market interest rate for bonds of similar risk and maturity is 6% and the bonds issue for $1,338,689. Interest is paid semi-annually on June 30 and December 31.

Required:

1. Complete the first three rows of an amortization schedule.

2. Record the issuance of the bonds on January 1, 2015.

3. Record the interest payments on June 30, 2015 and December 31, 2015.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...