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On Sep 1, 2020, Google Corporation issues $4,000,000 of 10% 10-year bonds dated Sep 1, 2020, at 114 when the market rate of interest was
On Sep 1, 2020, Google Corporation issues $4,000,000 of 10% 10-year bonds dated Sep 1, 2020, at 114 when the market rate of interest was 8%. Google Inc. uses the effective interest method of amortization. Interest is paid each Sep 1 and March 1. * Round answers to the nearest dollar. Required: 1. Prepare an effective interest method amortization table for the first four semi annual interest periods. 2. Record issuance of the bonds on Sep 1, 2020, the interest and amortization on December 31, 2020, on March 2021 and on Sep 1, 2021. 3. Show how Google Inc. would report the remaining bonds payable on its balance sheet at December 31, 2020
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