On January 1 st 2012, Everhart Corporation, a calendar year company
issues $100,000, 5%, 5-year bonds dated January 1, 2012. The bond pays
interest semiannually on January 1 and July 1 . The bonds are issued
to yield 6%.
		2.50%	3.00%	5.00%	6.00%
Present value of a
single sum for 5
periods		0.88385	0.86261	0.78353	0.74726
Present value of a
single sum for 10
periods		0.78120	0.74409	0.61391	0.55839
Present value of an
annuity for 5 periods		4.64583	4.57971	4.32948	4.21236
Present value of an
annuity for 10 periods		8.75206	8.53020	7.72173	7.36009

(d) If Everhart Corporation uses the effective interest method to amortize any premiums or discounts on their
outstanding bonds, what will be the journal entries to record interest expense for calendar year 2013?
(15 points)