1. Assume a $100,000, two-year, 10% bond that makes semiannual interest payments is sold for $96,535 when the market interest rate is 12%. Prepare an amortization table and make the journal entries to record the first two interest payments.

Part A A 5.00% interest 6.00% Interest Interest Unamortized Discount Amortization (B-A) Bond Carrying Amount ($100,000-D) Paymen Paid Expense Discount (D-C) BABA Journal entries: 1st pay Interest Expense Discount on Bonds Payable Cash 2nd pay Interest Expense Discount on Bonds Payable Cash