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On Jan 1, 2019 Noelles Napkin Company issues $4,000,000 8% 20 year bonds at an EFFECTIVE Interest Rate of 6% and interest payable semi-annually on

On Jan 1, 2019 Noelles Napkin Company issues $4,000,000 8% 20 year bonds at an EFFECTIVE Interest Rate of 6% and interest payable semi-annually on June 30^th and Dec 31^st .

Required:

USE the Present Value of a $1 (lumpsum) and Present value of an Annuity to calculate the Issue value of the BOND.

Record the issuance of the bonds

Prepare the Effective Interest Schedule for 5 years

Record the interest entries for Jun 30^th& Dec 31^st 2019

What is the carrying value of the BOND on Dec 31^st 2021?

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