Jazz Corporation issued a 8% $240,000 bond on January 1, 2016. The bond became due on January 1, 2019. The interest on the bond is payable semiannually, each July 1 and January 1. The required effective interest rate on the bond was 10%.(Round your calculations to the nearest $1)Instructions

i.Calculate the proceeds from the sale of the bond and the discount on the bond. (4 marks)

ii.Prepare a bond amortization schedule for the 3 years. Be sure to clearly show the semiannual interest payments. (6 marks

iii.Prepare the necessary journal entries to show:

The issuance of the bond on January

Interest payments on July 1, 2016

Interest payments on December 31, 2016(8 marks)

iv.What is the difference between a bond sold at a discount and a bond sold at a premium? (1 mark)

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