General Autoparts Inc. issued $105,000 of 7%, five-year bonds at a price of 89 on January 31, 20X1 (Note: When the issue price of bonds is provided, as in this case, you do not need to calculate it yourself; just use the stated price.). The market interest rate at the date of issuance was 9%, and the standard bonds pay interest semi-annually. Read the requirements. Requirement 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) Semi-annual Interest Date January 31, 20X1 July 31, 20X1 January 31, 20X2 July 31, 20X2 A Interest Payment (3.5% of Maturity Value) General Autoparts Amortization Table B C Interest Expense (4.5% of Bond Discount Preceding Bond Carrying Amortization (B Amount) - A) D Bond Discount Account Balance (Preceding D - C) E Bond Carrying Amount ($105,000 - D)

General Autoparts Inc. issued $105,000 of 7%, five-year bonds at a price of 89 on January 31,201 (Note: When the issue price of bonds is provided, as in this case, you do not need to calculate it yourself; just use the stated price.). The market interest rate at the date of issuance was 9%, and the standard bonds pay interest semi-annually. Read the requirements. Requirement 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) July 31,201. Start by recording the issuance of bonds on January 31, 20X1. (Record debits first, then credits. Exclude explanations from journal entries.) Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31, 20X1. (Record debits first, then credits. Exclude explanations from journal entries.) Requirement 3. How much cash did General Autoparts borrow on January 31, 20X1? How much cash will General Autoparts pay back at maturity on January 31, 206? Amount of cash General Autoparts borrowed on January 31, 20X1: Amount of cash General Autoparts will pay back on January 31, 20X6: Requirement 4. How much cash interest will General Autoparts pay each six months? Amount of cash interest General Autoperts will pay each six months: Requirement 5. How much interest expense will General Autoparts report on July 31, 20X1, and on January 31, 20X2? Why does the amount of interest expense increase each period? Explain in detail. In this step, enter the interest expense amounts General Autoparts will report on July 31, 20X1, and on January 31, 202. Interest expense General Autoparts will report on July 31, 20x1: Interest expense General Autoparts will report on January 31, 20.2: Why does the amount of interest expense increase each period? Interest expense increases because the as the bonds move toward maturity, and the must be amortized over the life of the bond. The bond carrying amount produces amount of interest expense each period. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record General's issuance of the bonds on January 31,201, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 20X1. Explanations are not required. 3. How much cash did General Autoparts borrow on January 31, 20X1? How much cash will General Autoparts pay back at maturity on January 31,206 ? 4. How much cash interest will General Autoparts pay each six months? 5. How much interest expense will General Autoparts report on July 31, 20X1, and on January 31,202 ? Why does the amount of interest expense increase each period? Explain in detail