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2. On January 1, 2022, Kings & Queens Inc. issued a $1,000,000 Bond for $864,100. The Bond has a Stated Rate of interest at 6%
2. On January 1, 2022, Kings & Queens Inc. issued a $1,000,000 Bond for $864,100. The Bond has a Stated Rate of interest at 6% and matures in 10 years paying interest semi-annually. The Market Rate of interest rose to 8% at the time of the Bond Issue. Prepare three journal entries on the following dates:
c) Assuming the Effective Interest Method, what was total Interest Expense reported for the year 2022?
d) Assuming the Effective Interest Method, what is the Carrying Value of the Bond as of December 31st 2022?
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