Required information

[The following information applies to the questions displayed below.]

Ike issues $270,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $276,848. When the market rate is 10%.

Required:

1.Prepare the January 1 journal entry to record the bonds' issuance.

Required information

[The following information applies to the questions displayed below.]

Ike issues $270,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $276,848. When the market rate is 10%.

2.Complete the below table to calculatethe total bond interest expense to be recognized over the bonds' life.

Required information

[The following information applies to the questions displayed below.]

Ike issues $270,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $276,848. When the market rate is 10%.

3.Prepare an effective interest amortization table for the bonds' first two years.

Required information

[The following information applies to the questions displayed below.]

Ike issues $270,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $276,848. When the market rate is 10%.

4.Prepare the journal entries to record the first two interest payments.