On February 1, 20XX, Ellison Co. issued ten-year bonds with a face value of $50,000,000 and a stated interest rate of (see below), payable semiannually on July 1 and January 1. The bonds were sold to yield (see below). The bonds are callable at 101 and convertible.

Assigned Coupon Rates (Stated rates) and Yields (market rate)

First name begins with

Coupon Rate

Yield

A, G , M, S

3%

4%

B, H, N, T

5%

6%

C, I, O, U

7%

8%

D, J, P, V

9%

10%

E, K, Q, W

11%

12%

F, L, R, X-Z

13%

14%

Based on your assigned coupon rates and yield, prepare the following (a through e)

a. Calculate the issue price

b. Prepare the journal entry to record the issuance of the bonds

Account Name

DR

CR

c. Prepare the amortization table

Interest

Carrying

Period

Cash

Expense

Amortization

Value