Using Effective Interest Amortization

Fill the balance sheet also Please!

Bond Issuance On issuance (January 1, 2025) Debit Credit Discount on Bond Payable: Contra Liability (attached to B/P). Balance Sheet (1/1/25) : 26 Valuation of Bonds Effective-Interest Method McGee Company issued $400,000 of 8%,5-year bonds on January 1 , 2025 , to yield 10%. Interest is payable semiannually on July 1 and January 1. McGee Company uses the effective interest method of amortization for bond premium or discount. Present value of the principal: Present value of the interest payments: Present value (selling price) of the bonds Bond Interest Interest (December 31): Using Effective Interest amortization. Bond Interest Interest (July 1): Using Effective Interest amortization