E10-9 Computing the Issue Price of a Bond with Analysis of Net Earnings and Cash Flow Effects LO10-3, 10-8 Imal Company issued a $1.025 million bond that matures in five years. The bond has a 7 percent coupon rate. When the bond was issued, the market rate was 6 percent. The bond pays interest twice per year, on June 30 and December 31. Use Table 9C1. Table 90 2. Required: 1. Record the issuance of the bond on June 30. (Round time value factor to 4 decimal places. Enter your answers in dollars not in millions. Round Intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of bond on June 30th. Note: Enter debits before credits Date General Journal Debit Credit June 30 Record entry Clear entry View general Journal E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3 Shuttle company issued $500,000, three-year 10 percent bonds on January 1, year 1. The bond Interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C1. Toble 902 (Round time value factor to 4 decimal places) Required: 1. Complete a bond payment schedule. Use the effective interest amortization method. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount /(-) premium amortized. Round Intermediate and final answers to the nearest whole dollar) Bond Payment Schedule interest Cash Payment Amortization Expense of Premium Date Carrying Amount 1/1/year 1 12/31 year 1 12/31/year 2 12/31 year 3 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for year 1 year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar) Year 1 Year 2 Year 3 Interest expense Bonds payable Interest payment issuance of bonds Payment of bonds