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Question Three (25 Marks) On 1st Jan., 2017, Apex Company sold 12% bonds having a maturity value of $300,000 for $ 322,745, which provides the
Question Three (25 Marks) On 1st Jan., 2017, Apex Company sold 12% bonds having a maturity value of $300,000 for $ 322,745, which provides the bondholders with a 10% yield. The bonds are dated January 1st 2017, and mature January 1st 2022, with interest payable December 31 of each year. Instructions: - a) Prepare the journal entry at the date of the bond issuance. (5marks) b) Prepare a schedule of interest expense and bond amortization for 2017 - 2019. (15marks) c) Prepare the journal entry to record the interest payment and the amortization for 2018. (5marks)
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