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On January 1, 20XX Avalanche Corporation issued 9%, 10 year bonds payable with a face value of $2,000,000. The semiannual interest dates are June 30
On January 1, 20XX Avalanche Corporation issued 9%, 10 year bonds payable with a face value of $2,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 10% and the bonds are issued at 93.779 ($1,875,580). Avalanche Corporation amortizes bonds by the effective interest method. 1) Prepare an effective interest method amortization table for the first four semiannual interest periods. 2) Prepare the journal entry recording the issuance of the bond on January 13) Record the journal entry of the first semi-annual interest payment. See below for formats Semiannual interest date January 1, 20xx Beginning Balance June 30, 20XX year 1 December 31, 20XX year 1 June 30, 20XX year 2 December 31, 20XX year 2 41) Continued record the required journal entries in the format below Account description B Debit credit Account description Credit
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