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Question 1 (7 points) Saved On November 1, 2019. Barton Corporation issued bonds with a face value of $2,500,000 due in 15 years, contract rate
Question 1 (7 points) Saved On November 1, 2019. Barton Corporation issued bonds with a face value of $2,500,000 due in 15 years, contract rate 6% and interest is paid semi-annually on May 1 and November 1 each year. The first interest payment is due May 1, 2020. The bonds were issued to yield 8%. Barton uses the effective interest method of amortization for bond discounts or premiums. The company's year-end is December 31. REQUIRED 1. Calculate the present value of this bond. (2 marks) 2. Prepare the journal entry to record the issue of the bonds. (1 mark) 3. Prepare any accrual entries required at December 31, 2019. (2 marks) 4. Prepare the journal entry for the May 1, 2020 interest payment. (2 marks) Paragraph B I U 1. Present Value, show calculations
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