Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 an issued at $184,566 when the market rate is 10%. Required 1. Prepare the January 1 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 Exhibit 148.2 for the bonds' first two years.

Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 an issued at $184,566 when the market rate is 10%. Required 1. Prepare the January 1 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 Exhibit 148.2 for the bonds' first two years.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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