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1. ABC company issued 10 -year bonds with a par value of $20,000,000 and an 8% annual face on January 2 , 2018. The issue

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1. ABC company issued 10 -year bonds with a par value of $20,000,000 and an 8% annual face on January 2 , 2018. The issue price of the bond issue was $19,866,397 which reflected an 8.1% effective interest rate. Interest is paid annually on Jan 2 . Round all answers to whole numbers. A. Complete a bond amortization table for the 1st2 years. B. Determine the effect on the accounting equation upon recording the issuance of the honde C. Determine the effect on the accounting equation upon recording the recognition of interest expense at December 31, 2018. Any premium or discount should be amortized using the effective interest rate method. D. Determine the effect on the accounting equation upon recording the interest paid to the bondholders on January 2,2019 . E. Determine the effect on the accounting equation upon recognizing the interest expense at December 31, 2019. Anv premium or discount should be amortized using the effective interest rate method. F. What is the carrying value of the bonds on 12/31/19 ? G. What is the balance in the discount on bonds payable account on 12/31/19? H. Show the balance sheet presentation of the bond on 12/31/19. 1. ABC company issued 10 -year bonds with a par value of $20,000,000 and an 8% annual face on Jantary 2 , 2018. The issue price of the bond issue was $19,866,397 which reflected an 8.1% effective interest rate. Interest is paid annually on Jan 2 . Round all answers to whole numbers. A. Complete a bond amortization table for the 1"t2 vears. B. Determine the effect on the accounting equation upon recording the issuance of the bonds. C. Determine the effect on the accounting equation upon recording the recognition of interest expease at Decemberid, 2018. Any preminm or discount should be amortized using the effective inferest rafe methosh. D. Determine the effect on the accounting equation upon recording the interest paid to the bondholders on January 2, 2019. E. Determine the effect on the accounting equation upon recognizing the interest expense at December 31, 2019. Any premium or discount should be amortized using the effective interest rate method. F. What is the carrying value of the bonds on 12/31/19 ? G. What is the balance in the discount on bonds pavable account on 12/31/19? H. Show the balance sheet presentation of the bond on 12/31/19

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