On January 1, 2015, Piper Co. Issued ten-year bonds with a face valueof $3,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%.

Questions:

1) Calculate the issue of price of the bonds

2) Prepare all journal entries for 2016.

USE THIS EFFECTIVE INTEREST METHOD CHART, THAT CONSIST OF THE FOLLOWING HEADINGS

1- DATE

2- CASH INTEREST

3- INTEREST EXPENSE

4- PREMIUM AMORTIZED

5- UNAMORTIZED PREMIUM

6- BOOK VALUE

PLEASE GIVE CLEAR ANSWERS