Review 2nd Midterm Acc 112 Question 1: On January 1, 2014, CBA Corporation issued $2,000,000, 9%, 5-year bonds for $1,922,780. The bonds were sold to yield an effective-interest rate of 10%. Interest is paid semiannually on June 30 and December 31. The company uses the effective-interest method of amortization. Instructions (a) Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates. (Round to the nearest dollar.) (b) Prepare the journal entries that Jenner Corporation would make on January 1, June 30, and December 31, 2014, related to the bond issue. (a) CBA CORPORATION Bond Discount Amortization Effective-Interest Method-Semiannual Interest Payments 19% Bonds Issued at 10% Semi Annual I period A Cont. "F.Vtime b. January 1, 2014 June 30, 2014 December 31, 2014 Cash Payment B C D EffC.V*6/12 (B-A) D+C Interest expense Dis. Ammort Carrying value