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Banjo Education Corp. issued a 4%, $230,000 bond that pays interest semiannually each June 30 and December 31. The cate of issuance was January 1,
Banjo Education Corp. issued a 4%, $230,000 bond that pays interest semiannually each June 30 and December 31. The cate of issuance was January 1, 2017. The bonds mature after four years. The market interest rate was 5%. Benjo Education Corp's year- end is December 31. Use TABLE 14A.1 and TABLE 144 2. Required: Preparation Component: 1. Calculate the issue price of the lond. (Use appropriate factor(s) from the tables provided. Round the final answer to the nearest whole dollar.) Issue price of the bond 2. Prepare a general Journal entry to record the issuance of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet > Record the sold bonds on original Issue date. Note: Enter debits before credits General Journal Debit Credit Date January 01, 2017 Record entry Clear entry View general Journal 3. Determine the total bond interest expense that will be recognized over the life of these bonds. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) Total bond interest expense 4. Prepare the first two years of an amortization table based on the effective interest method. (Do not round intermediat Period Ending Cash Interest Paid Period Interest Expense Discount Amort. Unamortized Discount Carrying Value Jan. 1/17 June 30/17 Dec. 31/17 June 30/18 Dec. 31/18 5. Present the journal entries Banjo would make to record the first two interest payments. (Do not round intermediate c View transaction list Journal entry worksheet
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