Preparing a Bond Amortization Table (Straight Line)}

Edmonton-Alston Corporation issued five-year, \(9.5 \%\) bonds with a total face value of \(\$ 700,000\) on December 31, 2018, for \(\$ 726,000\). The bonds pay interest on June 30 and December 31 of each year. The company uses the straight-line method of amortization.

\section*{Required:}

1. Prepare an amortization table (use straight line method).

2. Prepare the entries to recognize the interest payments made on June 30, 2019, and December 31. 2019 .

\section*{OBJECTIVE 4 Problem