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Question Two (80 points) On 15 Jan. 2017, Mango Company sold 12% bonds having a maturity value of $600,000 for $ 645,490, which provides the
Question Two (80 points) On 15 Jan. 2017, Mango Company sold 12% bonds having a maturity value of $600,000 for $ 645,490, which provides the bondholders with a 10% yield. The bonds are dated January 15 2017, and mature January 15 2022, with interest payable December 31 of each year. Instructions: - a) Prepare the journal entry at the date of the bond issuance. (20marks) b) Prepare a schedule of interest expense and bond amortization for 2017 2019. (40marks) c) Prepare the journal entry to record the interest payment and the amortization for 2018. (20marks)
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