1.

On January 1, 2008, Gordon, Inc. issued $200,000.00 of 7.50% annual interest rate bonds at 98.

The bonds are due in seven years and interest is paid once a year on December 31st.

(The calendar and fiscal year-end dates are the same)

Create the bond payment spreadsheet and record the journal entries

(check figure: total discount on bonds payable = $4,000.00)

for January 1, 2008 and December 31, 2008 for Gordon, Inc.