On December 31, 2015, Janson Bottle Company sold $1,000,000 in long-term bonds. The bonds will mature in 10 years and have a stated interest rate of 11% and a yield rate of 10%. The bonds pay interest annually on December 31 of each year. The bonds are to be accounted for under the effective interest method. There were $20,000 in bond issue costs Instructions

(a) What amount were the bonds issued for?

(b) Construct an effective interest rate table for the first four years (through December 31, 2019). Make sure all columns and rows are appropriately labeled (theres more than one acceptable label for each column). Round to the nearest dollar

(c) Prepare the adjusting entry(ies) to be made on December 31, 2018. Round to the nearest dollar

(d) Assume (for this part only) that year end is March 31st. Prepare the adjusting entry(ies) to be made on March 31, 2018

(e) Assume that 25% of the bonds are recalled at 103 on December 31, 2018 plus related redemption costs of $2,000. Prepare the necessary journal entry(ies