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Prepare amortization table using effective interest method

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Question - Bonds Payable (Calculator set on "END"). Johnson Corp. issued $2,000,000 of bonds on January 1, 2019. The bonds had a coupon rate of 6%, and were issued at an effective interest rate of 5%. The bonds pay interest semiannually on June 30th, and December 31st, and mature in 15 years.

a. Compute the sales price for this bond issue and prepare the journal entry to record their issuance.

b. Prepare an amortization table using the effective interest method of amortization that covers the first 3 semi-annual payments on this bond issue.

c. Prepare the journal entry associated with the first interest payment on these bonds.

Reference no: EM132489261

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