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Question #4 30 marks To get cash to purchase operating assets, Ballard Company, with a December 31 fiscal year-end, issued bonds with the following characteristics:
Question \#4 30 marks To get cash to purchase operating assets, Ballard Company, with a December 31 fiscal year-end, issued bonds with the following characteristics: (i) Date of bonds: January 1,2011 (ii) Maturity amount and date: $100,000 due in 10 years (December 31, 2020). (iii) Interest: 11% per year payable each December 31 . (iv) Date issued: January 1, 2011. Required: a. Construct the amortization table for the first 2 years for each bond. See (b). 2 b. Give the journal entries to record the issuance and the first 2 interest payments under each of 3 different independent cases: Case A - The bonds sold at par. Case B - The bonds sold to yield 12%. Case C - The bonds sold to yield 10% c. Provide the following amounts to be reported on the 2011 financial statements
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