Question: Ike issues $120,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued

at $123,044 when the market rate is 10%. Use the effective interest

Ike issues $120,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $123,044 when the market rate is 10%. Use the effective interest method. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ 0 Ike issues $120,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $123,044 when the market rate is 10%. Use the effective interest method. 4. Prepare the journal entries to record the first two interest payments.

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