Bonds Accounted For Under The Effective Method (20 Points)

On July 31, 2013, Camelot Castle Resorts issues a $2,500,000, 10 year, 3.5% Bond with interest payable semiannually on January 31 and July 31 of each year. The market interest rate on the date of issuance is 6%. Camelot Castle Resorts uses the effective interest method to amortize bonds.

Requirement

Prepare the journal entries that Camelot Castle Resorts would record on December 31, 2013; January 31, 2014; July 31, 2014; and July 31, 2023.[Please make amortization table to help determine the balances needed in these various journal entries.] December 31, 2013

January 31,2014

July 31, 2014

July 31, 2023 - This Is The Date The Bond Matures {Be Careful}