Question
On December 31, 2018, when the market interest rate is 10%, O'Brien Realty issues $1,200,000 of 11.25%, 10-year bonds payable. The bonds pay interest
On December 31, 2018, when the market interest rate is 10%, O'Brien Realty issues $1,200,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually. O'Brien Realty received $1,293,585 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Interest Carrying Cash Paid Expense Amortized Amount 12/31/2018 06/30/2019 12/31/2019
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