1. Bond Issuance and Amortization:
2. - RST Company issued $1,000,000 of 5-year, 8% bonds on January 1, 2024, at 98. Interest is payable semi-annually. The company uses the effective interest method for amortizing bond discounts.
3. - Calculate the cash received from the bond issuance and prepare the journal entry for the issuance. Create an amortization schedule for the first two interest periods and prepare the journal entries for the interest payments and amortization. Explain how the bond issuance and amortization impact the balance sheet and income statement.