1. On January 1, a company issues bonds: (30 pts) Face Value: Issue Price: Bond Term, in years: Interest Payments: $100,000 $106,340 4 Jan 1 Stated Interest Rate: 12% Effective Interest Rate 10% a. Prepare the Journal Entry to record the bond issuance on Jan 1, 2014 (6) Debit Credit 1. On January 1, a company issues bonds: (30 pts) Face Value: Issue Price: Bond Term, in years: Interest Payments: Stated Interest Rate: Effective Interest Rate $100,000 $106,340 4 Jan 1 12% 10% a. Prepare the Journal Entry to record the bond issuance on Jan 1 1-Jan Cash Premium on Bonds Payable Bonds Payable b. Prepare the amortization table through 12/31/17 (18 pts) Debit Credit $106,340 $6,340 $100,000 b. Prepare the amortization table through 12/31/17 (18 pts) Annual Interest Interest to be be Recorded (4 Period paid (2 pts) Issue Date 1 2 pts) Amortization of Disc/Prem (4 pts) Disc/Prem (4 pts) Bond Carrying Value (4 pts) Annual Interest Period Interest to be paid (2 pts) be Recorded (4 pts) Amortization of Disc/Prem (4 pts) Issue Date Disc/Prem (4 pts) $6,340.00 Bond Carrying Value (4 pts) $106,340 1 $12,000 2 $12,000 $10,634.00 $10,497.40 $1,366.00 $4,974.00 $104,974 $1,502.60 $3,471.40 $103,471 3 3 $12,000 $10,347.14 4 4 $12,000 $10,181.85 $1,652.86 $1,818.54 $1,818.15 $101,819 $0.39 $100,000 C. Prepare the journal entry to record the accrual of interest and the amortization of the first intere C. Credit Debit Prepare the journal entry to record the accrual of interest and the amortization of the first interest payment. Credit Debit 31-Dec Interest Expense $10,634 Premium on B $1,366.00 Cash or Interest Payable $12,000