Ike issues $230,000 of 9%, three-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. They are issued at $236,025. Their market rate is 8% at the issue date.

1.	Prepare the January 1, 2015, 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.

Amount Paid:

____ payments of ______

Par Value at Maturity:

Total Repaid

Less amount borrowed:

Total bond interest espense:

3.

Prepare an effective interest amortization table for the bonds' first two years.

Cash Interest paid, bond interest expense, premium amortization, unamoritized premium, carrying value for: 01/01/2015- 12/31/2016

4.

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

- Record the second interest payment on Dec. 31 2015

-Record the first interest payment on June 30, 2015

5.	Prepare the journal entry to record the bonds' retirement on January 1, 2017, at 98. -Record the retirement of the bonds on Jan 1 2017 at 98