gove corporation issued $4000,000 of 8% bonds on october 1, 2014, due on october 1, 2019. the interest is to be paid twice a year on april 1 and october1. the bonds were sold to yield 10% effective annual interest. gove corporation closes its books annualy on december 31.

Instructions.

a) complete the following amortization schedule for the dates indicated. (round all answers to the nearest dollar) use the effective-method.

Debit credit carrying amount

credit cash interest expense bond discount of bonds

october 1,2014 $3,691,117

april 1,2015

october 1,2015

b) prepare the adjusted entry for december 31, 2015. used the effective-interest method.

c) compute the interest expense to be reported in the income statement for the year ended december 31,2015.

thank you in advance for you help.