1 Example 14.8: On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin will pay interest 2 semiannually on June 30 and December 31. On the date Ruffin issued the bonds, the market rate of interest was 6%. The company's fiscal year ends on December 31. What 3 is the issue price of this bond? Prepare the journal entry to record the issuance. Prepare an amortization schedule over the four-year period using the effective interest rate 4 method. Prepare the journal entries to record the inter-est entries for the first year. Prepare the journal entry to record the payment of the bonds at maturity. Prepare the 6 t-accounts for the bond payable and bond discount accounts for the life of the bond. 7 8 Since stated interest rate 4%