problem 2

(a) Prepare an installment payments schedule for the first 3 years. (b) Prepare the entries for (1) the loan and (2) the first two installment payments. Pollem . A l Company issued $400.000.9%. 20-year bonds on January 1, 2012, at 103. Inter- est is payable semiannually on July 1 and January 1. ACME uses straight-line amortization for bond premium or discount. Instructions Prepare the journal entries to record the following. (a) The issuance of the bonds (b) The payment of interest and the premium amortization on July 1, 2012, assuming that inter- est was not accrued on June 30. (c) The accrual of interest and the premium amortization on December 31, 2012 (d) The redemption of the bonds at fil/3 assuming interest for the last interest period has been paid and recorded