E10-12

required: 1. Prepare the journal entry to record the issuance of the bonds. 2. Prepare the journal entry to record the interest payment on De record the interest payment on December 31, 2018. Use effective- interest amortization. 3. Show how the bond interest expense and the bonds payable should be financial statements for 2018. e bonds payable should be reported on the annual E10-12 Determining Financial Statement Balance with the Effective-Interest Amor Bond Discount the Effective-Interest Amortization of a Eagle Corporation issued $10,000,000, 6.5 percent bonds dated April 1, 2018. The market rate interest was 7 percent, with interest paid each March 31. The bonds mature in three years, on March 31, 2021. Eagle's fiscal year ends on December 31. Required: 1. What was the issue price of these bonds? 2. Compute the bond interest expense for fiscal year 2018. The company uses the effective-interest method of amortization. 3. Show how the bonds should be reported on the statement of financial position at December 31, 2018. 4. What amount of interest expense will be recorded on March 31, 2019? Is this amount different from the amount of cash that is paid? If so, why