On January 1, Year 1, Twain Corporation sold $550,000 of Its own 5 percent, 10-year bonds, Interest is payable annually on December 31. The bonds were sold to yleld an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $509.519 Required a. Prepare the joumal entry for the issuance of the bonds. b. Prepare the journal entry for the amortization of the bond discount and the payment of the Interest at December 31 , Year 1. (Assume effective interest amortization.) c. Prepare the journal entry for the amortization of the bond discount and the payment of Interest on December 31, Year 1. (Assume straight-line amortization.) d. Caiculate the amount of Interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-IIne amortization.) Complete this question by entering your answers in the tabs below. Prepare the journal entry for the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.) Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest dollar amount.) Journal entry worksheet Record the entry for the amortization of the bond discount and the payment of the interest at December 31 , Year 1 . Notel Enter debits before credits. repare the journal entry for the amortization of the bond discount and the payment of interest on December 31 , Year 1 . (Assume traight-line amortization.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. tound your intermediate calculations and final answers to the nearest dollar amount.) Journal entry worksheet Record the entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. Noten Enter debits before credits. Complete this question by entering your answers in the tabs below. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) (Round your intermediate calculations and final answer to the nearest dollar amount.) Complete this question by entering your answers in the tabs below. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.) (Round your intermediate calculations and final answers to the nearest dollar amount.)
