$3$ Gadget Co invests in a $$100,000$ bond with an $12\%$ coupon rate. The market rate of interest is $10\%$ annually and it is a $5$ year bond

Assuming the company invests on January $1$st and only pays $$107,582$ for this bond, what is the journal entry on January $1$ st$?$

Prepare a full amortization table for this bond:

Purchase

Cash Received Interest Revenue Amortized Value Carrying Value

Year $1$

Year $2$

Year $3$

Year $4$

Year $5$

$1718$

$19$

$20$