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Reference no: EM132203953

In January 1, Year 2017, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on June 30 and December 31 when the market rate of interest for similar bonds was 6%. Use the following format and round figures to the nearest dollar.

1. Actual proceeds received from the issuance of the bonds.

2. The amortization schedule for Year 1 and Year 2 using the effective interest rate method.

Date      Cash Paid     Interest Expense       Amortization           Bond Carry Value

3. Show how this bond would be reported on the balance sheet at December 31, Year 2.

Reference no: EM132203953

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