Colton Cars Co. issued $1.8 million of 5%, 5-year bonds on January 1, 2024. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 4% for these bonds. Coulton has a calendar year end.

Instructions

Calculate the price of the bonds and record the bond issue.

Prepare an effective-interest amortization table for these bonds. Round amounts to the nearest dollar.

Journalize the first four interest payments