10 points Save Answer On 1/1 Company issued bonds. Use the following data to record entries for the issuance of the bonds on 1/1, the interest payment and amortization on 7/1 an the accrual on 12/31. The bonds will mature in 10 years and pay interest semiannually on July 1st and January 1st. Use the effective interest rate method to compute amortization. Bond Face Value Issue Price Stated Rate Effective Rate 750,000 705,187 10% 11% ACCOUNT NAMES: YOU MUST USE THE EXACT SPELLING OR ENTRIES WILL NOT BE MARKED CORRECT. ROUND ALL AMOUNTS TO 0 DECIMALS. DO NOT USE $ for any amounts, use commas. In each box below, enter the account name and the amount debited or credited. ADDITIONALLY YOU MUST ENTER 0 (ZERO) in the unused cell FOR EACH LINE. IF YOU DO NOT FOLLOW THESE INSTRUCTIONS YOU WILL NOT GET FULL CREDIT! Date CASH 100 0 ACCOUNTS PAYABLE 0 100 REMINDER add a 0 to ALL unused cells, and do not skip any rows. FIRST ENTER all debits in alphabetical order by account, and then credits in alphabetical order by account. Cash Unamortized discount Unamortized premium Bonds payable Interest expense Interest payable (1) PREPARE THE JOURNAL ENTRY TO RECORD THE ISSUSANCE OF THE BONDS. 1/01 2. Prepare the journal entry for the interest payment AND amortization on 1st interest Payment date using the effective interest method 7/01 3. What is the bond's carrying value AFTER the 1st interest payment? BOND OUTSTANDING BALANCE 4. Prepare the entry to record interest expense accrual and amortization at year end using the effective interest method. 12/31 5. Prepare the entry to record interest expense and bond amortization for the 1st interest payment using straight line amortization. 07/01