Bond Amortization Schedule and Entries The following facts relate to a bond that was issued: Face Amount: .......... $1,000,000 Stated Annual Interest Rate:. al Interest Rate: .......................... 6% Term:.. ........... 4 years Interest Paid: ............ .............. Annually Effective annual interest rate........................ 8% The bond sold for .... ..... $933,757.46 A. Prepare a Bond Amortization Schedule for the life of the bond. B. Prepare the following general journal entries for: 1. When the bond is sold. 2. Each year the cash interest payment is made. 3. When the bond matures. CHECK NUMBERS Selling Price of $2,000,000 bond when the effective rate is 10%: $1,877,102.60 Stated Cash Interest Payment for $1,000,000 bond: $60,000.00 Yr. 1 Interest Expense for $1,000,000 bond: $74,700.60 Yr. 2 Increase to Bond Liability for $1,000,000 bond: $15,876.64