Prepare the journal entries to record the bond at january

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Reference no: EM133378993

Question: The company decides to issue a $1,500,000 of 10.5%, 10 year bond. The bond was issued on January 1, 2019. The bond yield is 10%. The bond pays interest once per year at December 31 of each year.

Note:

The present value factor of an annuity for 10 years at 10% = 6.14457.

The present value factor of a single sum for 10 years at 10% = 0.38554

Instructions:

(1) Prepare the journal entries to record the bond at January 1, 2019 and at December 31, 2019.

(2) Prepare the bond amortization schedule for only 3 years, 2019,2020,2021.

Reference no: EM133378993

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