On January 1, 2020, Kansas Corporation issued $600,000, 4%, 20-year bonds, with semi-annual interest payments. Kansas will pay interest on July 1 and January 1. The bonds were issued to yield an effective rate of 6%.

Instructions:

(a) Compute the proceeds of the bond issue.

(b) Prepare a bond amortization table for 2020 through 2021.

(c) Prepare all necessary journal entries related to the bond issue for Kansas from issuance (sale) of the bonds through the first two interest payments