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On June 30, 2017, the market interest rate is 7%. Chilliwack Enterprise issues $515000 of 8%, 13-year bonds at 113.944. The bonds pay interest on

On June 30, 2017, the market interest rate is 7%. Chilliwack Enterprise issues $515000 of 8%, 13-year bonds at 113.944. The bonds pay interest on June 30 and December 31. Chilliwack Enterprise amortizes bonds by the effective-interest method.

Requirements: 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on June 30, 2017, the payment of interest at December 31 2017, and the semi-annual interest payment on June 30, 2018.

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