Prepare the bond amortization table for the issuance

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Question - Barnes Pictures is a national television network looking to expand its original programming. To fund this expansion, it issues $5 million of 6%, 20-year bonds, paying interest semi-annually. These bonds were issued on Jan 1, 2020 when the market rate was 6.5%. Interest is paid June 30 and Dec 31 each year.

Required -

a) Prepare the bond amortization table for the issuance and first 2 interest payments.

b) Prepare the journal entry for the Jan 1, 2020 issuance of the bonds.

c) Prepare the journal entries interest payments for June 30 and Dec 31, 2020.

Reference no: EM133147206

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