S14B-16 (similar to)

On December 31, , when the market interest rate is 12%,issues $500,000of 9.25%, -year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $421,244 .

Requirements

1.P.R.E.P AN amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.)

2.Using the amortization table P.R.E.P in Requirement 1, journalize issuance of the bonds and the first two interest payments.