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CV= 5,536,696 22. Grove Corporation issued $6,000,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid
CV= 5,536,696 22. Grove Corporation issued $6,000,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31 (fiscal year end). Instructions: (10 + 5 + 5 = 18 points) (a) Prepare the amortization schedule showing entries up to second interest payment using the effective-interest method. (Round all answers to the nearest dollar) (b) Prepare the adjusting entry for December 31, 2021. Use the effective-interest method. (c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2021
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