Prepare journal entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method.

re journal entries to record issuance onds, payment of interest, and nd discount usin On January 1, 2014, Lock Corporation issued ective interest metho $1,800,000 face value, 596 year bonds at1,667,518This price resulted in an effective-interest rate of on the bonds. Lock uses the effective-interest method to amortize bond 690 premium or discount. The bonds pay annual interest l Instructions: Rou computations to the nearest dollar (a) Prepare the jourmal entry to record the issuance of the bonds on January 1,2014 01/01/14 Account title Account title Amount Amount Account title Amount (b) Prepare an amortization table through December 31, 2016, (three interest periods) for this bond issue. LOCK CORPORATION Bond Discount Amortization Effective-Interest Method-Annual Interest Payments 596 Bonds Issued at 6% Annual Interest Periods Issue date Interest to be Paid Interest Expense to be Recorded Discount Amor tization Unamnor tized Discount Bond Carrying Value 1,800,000 (c) Prepare the jounal entry to record the accrual of interest and the amortization of the discount on December 31, 2014 12/31/14 |Account title Amount Account title Account title Amount Amount (d) Prepare the journal entry to record the payment of interest on January 1, 2015 01/01/15 Account title Amount Account title Amount