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(4 points) On 01-01-15, J issued $9,000,000 of its 4%, 5-year term bonds dated 01-01-15. At the time the bonds were issued, similar bonds paid
- (4 points) On 01-01-15, J issued $9,000,000 of its 4%, 5-year term bonds dated 01-01-15. At the time the bonds were issued, similar bonds paid 4.125%. In conjunction with issuing the bonds, on 01-01-15, J incurred and paid $75,000 of issuance costs. The bonds pay interest every July 1 and January 1. J uses the effective-interest method to amortize any bond discount or premium. J prepares AJEs only as of every December 31. Prepare (and submit to me) a complete amortization schedule for these bonds. The schedule should look like the ones in your text. You must use an excel spreadsheet. At a minimum, the values for your Interest Expense and Carrying Amount of Bonds columns should be based on formulas not you simply type in an amount that you calculated by hand! Also, prepare the entries J should make on
- 01-01-15
- 07-01-15
- 12-31-15
- 01-01-16
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