On January 1, 2016, Flint Incorporated issued $1,520,000 par value, 4%, seven-year bonds (i.e., there were 1,520 $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Determine the issue price of the bonds based on a 10% market rate of interest. Prepare the amortization table for the first two years, assuming Flint uses the effective interest rate method.

The issue price of the bonds is $

1,068,622

.

Prepare the amortization table for the first two years, assuming Flint uses the effective interest rate method. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.)

	Cash	Effective	Discount/Premium	Carrying
Date	Interest	Interest	Amortized	Value
January 1, 2016				$1,068,622
July 1, 2016	$30,400
January 1, 2017	30,400
July 1, 2017	30,400
January 1, 2018	30,400