Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 79

Refer to the bond details in Problem 14-5A.
Required
1. Prepare the January 1, 2015, journal entry to record the bonds' issuance.
2. Determine the total bond interest expense to be recognized over the bonds' life.
3. Prepare an effective interest amortization table like the one in Exhibit 14B.1 for the bonds' first two years.
4. Prepare the journal entries to record the first two interest payments.
Reference: Exhibit 14B.1

Reference: Problem 14-5A.