WILL RATE!

on June 1st, 2013, Everly bottle company sold $3,000,000 in long-term bonds for $2,631,325.97. the bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on December 31st of each year. The bonds are to be accounted for under the effective interest method.

1. Create Journal entry to record the sale of bonds

2. Create a journal entry to record the first payment of interest on December 31, 2016

3. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortiation at each Dec. 31. Make sure all of the colums and rows are labeled correctly