I-Bar Co. sold bonds on January 1, 2012. The bonds pay interest on January 1 and July 1 and I-Bar. Data relating to these bonds are as follows:
	Face	$ 100,000		Stated Rate	8%		Issued at	92.278%
				Effective Rate	10%
Instructions:
a) Calculate the Semi Annual Bond Interest Rates					b) Calculate the Cash Received from the Bond Sale
		Annual	Semi-Annual
Stated Rate
Effective Rate
					Cash Received
c) Prepare the journal entry to record the issuance of the bonds on January 1, 2012
	01/01/12
d) Calculate the Semi-Annual Interest Payment
Interest to be Paid
e. Prepare a bond interest and amortization schedule. When creating the cell reference for column A of the table, hit F4 after the reference but before hitting enter. Also, when entering the $Formula for column B in the table, hit F4 after referencing to the interest rate. Using F4 will allow you to lock the referencing portion of the formulas into place so you can highlight the entire row and drag it down to the end of the table. When the table is complete, you will be off by $1 in the last row of columns D and F because of rounding.
		Effective Interest MethodSemiannual Interest Payments
			(A)	(B)	(C)	(D)	(E)
	Date	Semi- annual Interest Periods	Interest to be Paid	Bond Interest Expense	Amortized Amount	Unamortized Amount	Bond Carrying Value
36	1/1/2012	Issue date
37	7/1/2012	1
38	12/31/2012	2
39	7/1/2013	3
40	12/31/2013	4
41	7/1/2014	5
42	12/31/2014	6
43	7/1/2015	7
44	12/31/2015	8
45	7/1/2016	9
46	12/31/2016	10
f) Prepare the journal entry for interest and the amortization on 7/1/2012.
	07/01/12
g) Show the balance sheet presentation of the Bonds Payable at December 31, 2014