Financial Accounting Fundamentals

Edition: $8$th Problem $10-9$A Effective Interest: Amortization of bond discount P$5$

Refer to the bond details in Problem $10-4$A$.$

B

Required

$1.$ Prepare the January $1$ journal entry to record the bonds$$ issuance.

$2.$ Determine the total bond interest expense to be recognized over the bonds$$ life.

Check $(2)$ $$97,819$

$3.$ Prepare an effective interest amortization table like the one in Exhibit $10$B$\mathrm{.}1($PICTURE ATTACHED$)$ Bonds: $$100,000$ Par Value, Semiannual Interest Payments, Two$-$Year Life,

$4\%$ Semiannual Contract Rate, $5\mathrm{.}0155\%$ Semiannual Market Ratefor the bonds$$ first two years.

$(3)12/31/2022$ carrying value, $$307,308$

$4.$ Prepare the journal entries to record the first two interest payments.