Mitchell Inc. issued 120 of its 6%, $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each July 1 and December 31 and were issued to yield 7%. The bonds mature in three years on December 31, and the company uses the effective interest method to amortize bond discounts or premiums.

Required

a. Determine the selling price of the bonds.
b. Prepare an amortization schedule for the first year of the bond.
c. Prepare journal entries on the following dates.
1. January 1 of Year 1, bond issuance.
2. July 1 of Year 1, interest payment.
3. December 31 of Year 1, interest payment.

Recording Bond Entries and Preparing an Amortization Schedule- Effective interest Method, Discount Mitchell inc issued 120 of its 6%,51,000 bonds on January 1 of Year. 1 . The bonds pay cash interest semiannually each july 1 and December 31 and were issued to yield 7. . The bonds mature in three years on December 31, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds b. Prepare an amortzation schedule for the first year of the bond. c. Prepare journal entries on the following dates. 1. January 1 of Year 1 , bond issuance. 2. July 1 of year 1, interest payment. 3. December 31 of Year 1 , interest payment. Note found amount to the nearest dollar. Note: Round amounts in Schedule to the nearest whole dollar. Note: Do not use negative signs. Note: Round your answers to the nearest whole dollar